Markets Speak: Shanghai Copper Has Shredded 1370 Yuan In A Month

Copper......

Most active and highest Copper contract in Shanghai has lost 1370 yuan per tonne in last one month. Shanghai Copper for June expiry settled at 56310 yuan per tonne on Monday. Interesting to note is the fact that the Open interest in the contract has jumped by 29876 lots to 233918 lots in total since last month. The fall in metals across globe has been a impact of the slowdown in Chinese buying and lower demand in spot markets. China refrained from buying metals before the lunar New Year and the traders remained waiting for lower prices after coming back before entering the markets. The slowdown in spot demand continues even now as the curbs on property purchases is acting as a bane for the metal. China consumes more than 40% of the total metal produced in the world. The curbs in property markets mean that the consumption rate will be affected in coming months. Calls of increase in world supplies are also concerning traders. The copper markets can transform itself into surplus after world major production units will start functioning in 2013-14. Refined Copper stocks in Shanghai Futures Exchange hit a one year high at 226201 tonnes last week. Even in LME the stocks have moved up by 44% since the start of the year to 462400 tonnes. Source by Commodity Insights