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Copper Investing News reports copper prices in a rally recently. Chinese stockpiling and restocking, tight scrap supply and improved demand have lifted copper in Shanghai to a premium to the London price; this arbitrage opportunity has, in turn, supported imports. So far this week, stockpiles of copper in LME-monitored warehouses fell 1.6 per cent to …
Copper Investing News reports copper prices in a rally recently.
Chinese stockpiling and restocking, tight scrap supply and improved demand have lifted copper in Shanghai to a premium to the London price; this arbitrage opportunity has, in turn, supported imports. So far this week, stockpiles of copper in LME-monitored warehouses fell 1.6 per cent to 450,100 tonnes. Canceled warrants, indicating metal to be taken from storage, stand at 16 per cent of LME inventories. ”There is a lot of metal destined to leave warehouses going to China,” Robin Bhar, an analyst at Credit Agricole SA’s Calyon unit in London, said by phone. “Warrants are tight.” This occurrence has pushed copper markets into backwardation, where metal for immediate delivery is more expensive than future contracts.
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