Hedge funds bail on copper as Goldman sees 'supply storm'

New York

COPPER is stuck in a rut. While other metals have shone in 2016, copper has struggled to gain traction and last week erased its gains for the year. Demand in China, the world's biggest user, is slowing just as Goldman Sachs Group Inc predicts a "supply storm" will hit the market and drag prices even lower.

Stockpiles of the metal are ballooning, further pointing to a demand slowdown. Inventories monitored by the London Metal Exchange have jumped to a 10-month high. Supplies are likely moving out of China and into warehouses tracked by the LME, Commerzbank AG said in a report on Aug 24. The hoard underscores why money managers are betting on more price declines.