Writing for Reuters, Andy Home said today that despite fears of slowing copper imports from China following investigations at Qingdao port, the copper market has yet to see a shock wave. Although he writes that some of the metal appears to have moved “behind the scenes,” Home notes that there has not been a widespread unwinding of copper stocks.
As quoted in the publication:
As time passes without fresh revelations, it does look as if Qingdao was a one-off. There has, critically, been no disorderly unwind of financing deals, even if the terms have been significantly tightened. The collateral finance business, in other words, is rolling on, albeit with increased scrutiny of where the metal is being stored.
Analysts at Macquarie Bank said:
[L]arge and well-established importers have been seen to survive previous credit crackdowns, and we expect they will again.