Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (1372)	10/9/2003 7:09:12 AM
From: russwinter	Read Replies (1) \| Respond to of 110194

<You must be driving Bently. -g-> Obviously, Tom hasn't tried his hand on my short sales yet, or the Bently may have to be traded in on a VW. Commodity scramble is on, has a panic look to it. LME inventories can be tracked here. Ni is nearly completely out. Cu at about 566,000, dropping fast: metalprices.com Reuters China copper-End-users mull stocking up after price rise Thursday October 9, 6:27 am ET By Polly Yam HONG KONG, Oct 9 (Reuters) - Chinese end-users are considering whether to increase purchases of spot copper amid fears prices may rise further in the domestic and international markets, traders in China said on Thursday. Having returned from a week-long National Day holiday, consumers have been stunned by copper prices that have risen by about $70 a tonne on the London Metal Exchange since October 1. The most active Shanghai Futures Exchange February contract has gained 380 yuan over the past two trading days, catching up on gains in London. "A few clients already booked small lots yesterday," said a trader for a local trading firm. "Some customers asked for bigger lots, but we don't have excessive materials," said a trader for one large Chinese producer. Traders saw supplies for spot copper remaining tight in Shanghai, the largest copper retailing base in China, due to fewer imports. In the spot market, premiums for Chinese copper rose to 160-180 yuan a tonne over Shanghai Futures Exchange October futures, versus about 120-150 yuan in late September, traders said. They saw premium offers for Grade A imported copper at $85-$95 against $80-$90 two weeks ago. Traders said many end-users remained reluctant to buy SX-EW (solvent-extraction electrowinning) copper which was relatively abundant in Shanghai and offered at lower premiums. "SX-EW copper is produced by a different technology, not like electrolytic copper. Most Chinese end-users are not used to it," a manager for another large Chinese producer said. "Technically, many Chinese end-users cannot use SX-EW copper," a trader said. Traders said Codelco, the largest copper producer in the world, was the main provider of SX-EW copper to China and they added that many Chinese buyers were awaiting premium offers for 2004 shipment. "Our company has not received an offer from Codelco. We will talk about the premium during the LME Week in London," one buyer said. For Grade A copper, traders said many buyers targeted the premium at $75, which will be $22 higher than last year. "If the premium was higher than $75, I believe very few Chinese buyers would sign 2004 shipment," the buyer said.