Dr.Copper is sick again as the almost unprecedented surge in inventories, that we detailed previously, continues to pressure the economic metal to its lowest levels since January…
As LME Copper inventories explode higher…
Copper held in Asian warehouses tracked by the London Metal
Exchange jumped 50 percent in the past two days, the most in seven
years.
Supplies are moving to Singapore, South Korea and Taiwan from China,
where stockpiles tracked by the Shanghai Futures Exchange have almost
halved since mid-March.
Base metals are still trading at “relatively low levels,” Jens
Naervig Pedersen, a senior analyst at Danske Bank in Copenhagen, said by
e-mail. “Uncertainty over the outlook for global manufacturing is outweighing the positive effect of the lower dollar,” he said.
Whether this is more CCFD unwinds or the hangover from the massive
speculative bubble of the last 3 months is unclear but the inventory
spike in almost without precedent.
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