SHANGHAI, Sept. 23 (SMM) –Based on SMM sources, although copper prices have been slumping recently, copper processing enterprises are currently not seen to significantly build stocks before the Chinese National Day holiday.
The most active copper contract on the Shanghai Future Exchange market opened RMB 1,130/mt lower on September 22nd, and then broke rapidly below RMB 60,000/mt, dropping to RMB 59,610/mt, and a total decline of RMB 8,000/mt for the year.
Copper prices are tumbling, while the US economy and European debt crisis are not turning any better, fueling speculation copper prices will experience similar price slumps in 2008 during the Chinese National Day holiday period. As a result, downstream producers are extremely cautious towards building raw material inventories, still mainly buying on an as-needed basis. Whether or not there will be large-scale stockpiling activities, we shall wait and see till next week.