SHANGHAI, Dec. 18 (SMM) – It is rumored that major Chinese copper smelters will meet this Saturday to discuss matters about copper stockpiling, according to industry sources.
Main topics in the meeting will be about price, time and volumes for copper stockpiling, industry sources said.
Stockpiling volumes are expected around 400,000 tonnes, far higher than the previously buying rumor of 200,000 tonnes by China’s State Reserve Bureau.
It is widely believed that the stockpiling will be commercial one, so the impact on copper prices from the buying will be small, industry analysts said.
“The buying will tighten spot supply, but imports, which are profitable from the rising SHFE/LME copper price ratio will offset the shortfall, leaving small positive impact on copper prices” an analyst from Guotai Junan Futures observed.
Another analyst from Guosen Futures also added that any boost on copper prices would be short-lived, since metals for the buying are mainly used as collateral.
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