Hedge Funds Are Playing 'Dangerous Game' With Copper
- Rio's copper chief says price isn't reflecting fundamentals
- Says funds shorting copper as macro bet on China's economy
Rio Says Hedge Funds Playing Dangerous Game With Copper
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Hedge funds betting that copper will drop further are playing a “dangerous game” with prices, according to the head of copper at Rio Tinto Group, the world’s second-biggest mining company.
The metal is “not trading on fundamentals,” Rio Copper & Coal Chief Executive Officer Jean-Sébastien Jacques said in an in London. “There is lots of short-selling in copper and we’ve seen the pick up in terms of short-selling in copper on the back of what happened in China a few months ago.”