Size of Chinese Copper Stockpiles Not Promising

Reuters reported that China’s metals warehouses are so full that copper is being stockpiled in car parks, a bad sign for global metals prices and an indication that China’s growth may not continue.

As quoted in the market news:

For copper, Chinese traders appeared to have misjudged the fundamentals and embarked on a massive shopping spree in November, expecting demand to rebound after the Lunar New Year.

But the buyers never materialized in bulk and China is now left with up to 1.4 million metric tons of copper, the most since 2009. In the past month, stocks have fallen 3.5 percent, half the pace from the same period a year ago, according to data from the Shanghai Futures Exchange.

Click here to read the full Reuters report.