Aurubis: Physical Copper Trade Hit By China Absence, High Price

LONDON, Feb 15, 2011 (Dow Jones Commodities News via Comtex) -- Physical trading on the copper market continues to be limited, as some Chinese semifabricators extend their break for the Lunar New Year holiday and high prices hinder liquidity, Aurubis AG (NDA.XE) said Tuesday.

Aurubis, Europe's largest copper producer, noted the impact this lack of physical activity is having on inventories on the metal stored at London Metal Exchange warehouses, which have "stagnated" at just over 400,000 tons.

"The copper quantities registered for delivery at the LME currently only amount to 9,600 tons," the producer added.

Buying activities to physically cover exchange-traded funds have also quietened to the point that they are "currently not noticeable," it said.