Copper drifts lower

13 Oktober 2012

Copper drifts lower

Monday, August 22, 2005

COPPER prices on the Shanghai Futures Exchange have continued to drift lower amid reports that stocks of the metal are rising at a rapid rate.

The benchmark October contract dropped about $US5 to $US3533 a tonne in heavy volume with investors said to be looking closely at global copper stock levels.

"The continued increase in the past few weeks in global copper stocks are a negative factor and raise concerns about more inflows," an analyst from Great Wall Futures told Dow Jones in Shanghai.

According to the Shanghai Futures Exchange stock report released after the market closed, total deliverable copper rose to 50,121 tonnes, up 24% on the previous week.

Copper stocks in Shanghai have been rising since the end of July because of low demand and steady deliveries.

Metal traders are reported to be increasingly confident that the copper price on the London Metal Exchange will fall substantially in the near future because of a similar expected rise in LME stocks.

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