iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,473 Blog Posts

The Chinese Copper Rally Ended in April

Much of the rally we’re all enjoyed, in one form on another, was predicated upon a resurgence in the cheap Chinese plastic economy that had stalled out in early January. Ever since the low point of 2016, copper prices had risen due to a renewed Chinese demand.

However, as we now see, that rally was only bulking up inventorie, not really indicative of a rally born through economic expansion. The rally has ended. Go in peace.

image

There’s “no need for imports given so much inventory as we enter the low season,” Ji Xianfei, an analyst at Guotai Junan Futures, said from Shanghai before the data were released. There’s also been no profit from arbitrage for a while, said Ji, referring to a lack of opportunity to benefit from differences between prices in China and overseas.

Ore Imports

Imports of copper ore and concentrate fell 8 percent to 1.26 million tons in April from a month earlier. In the first four months, purchases gained about 31 percent to 5.27 million tons year on year, the data showed.

Inventories in warehouses tracked by the Shanghai Futures Exchange swelled to a record in March, then fell 15 percent last month, according to bourse data. Holdings in bonded warehouses — which aren’t publicly disclosed — rose in April to the most since August, according to Bloomberg Intelligence.

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8 comments

  1. roundwego

    When is the miners gonna realize they are supposed to go down.

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  2. moosh

    Doesn’t it seem like an infrastructure build is a lock going into the the U.S. election, on both sides?

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    • btn

      No, Trump’s position is simply to “bring more jobs back” by reducing imports (and exports), deporting illegal immigrants, and reducing legal immigration. Then of course, he is going to reduce business and capital gains taxes, because we know how well trickle-down has worked out for the middle-class over 30+ years so far. The only thing Trump will spend money on is Homeland defense (DoD, the Wall, etc.) and tax breaks.

      As for Hillary, infrastructure is her top priority, along with 30 other key issues….

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  3. btn

    Double-top dating from mid-March, but $2.15 is strong support

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    • Dr. Fly

      Btn

      Your rant was incoherent gibberish.

      Middle class has been eaten alive under the banner of globalization. We need a reset.

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      • btn

        I was a bit confused but then I realized you were responding to my Trumpost.

        I’m with you on the hollowing-out-of-the-middle-class-needs-a-reset-response; I just don’t think a bilionaire that
        (a) has never done anything against his own (1%) interest in his entire life,
        (b) has no idea what living in the middle class is like, and
        (c) thinks lying is a negotiation strategy (to get elected)
        is the “man God” solution that his supporters think he is.

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  4. chuck bennett

    If he is not , we the people will through him out next election.

    Regards

    Chuck Bennett

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  5. tradingnymph

    duh.

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