Rumors Swirling About China Copper Reserves

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.

The article is edited by SMM and is provided for information purpose only. SMM assumes no liability and does not warrant the accuracy, reliability or completeness of information contained or quoted in the article, either express or implied. SMM further disclaims any liability for losses in connection with the information contained or quoted in the article.

For news cooperation, please contact us by email: sallyzhang@smm.cn or service.en@smm.cn.