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Copper Limit Down In Shanghai; Falls To Lowest Since July 2009

Tyler Durden's picture


Following a triumvirate of macro misses from AsiaPac (South Korea unemployment surged, Aussie confidence plunged, and Japanese inflation tumbled), the credit concerns running riot through the collateral underlying China's shadow banking system continue to crush Copper (and iron ore) prices. Copper is limit down in Shanghai at its lowest since July 2009 - these size moves have only occurred twice in history (Lehman and the US downgrade). Japanese stocks are ignoring any ramp efforts in USDJPY and US equity futures are fading qucikly with AUDJPY....


A sprinkling of headlines from this evening:

  • South Korea unemployment jumped to 3.9% (exp 3.2%, prev 3.2%) - highest in 3 years
  • Aussie Consumer Confidence dropped to 10-month lows
  • Japanese Producer Price Inflation (Domestic Corporate Goods) MoM -0.2% - biggest deflation since Dec 2012 and YoY slowest since June 2013
  • *COPPER IN SHANGHAI DROPS AS MUCH AS 5.2% TO 43,800 YUAN/MT (close to biggest drop since Dec 08)


Leaves copper echoinG Lehman and the US downgrade...


With the Nikkei unable to catch a bid from JPY ramp


and S&P futures continuing to track AUDJPY lower..



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Tue, 03/11/2014 - 21:36 | 4536724 SilverIsMoney
SilverIsMoney's picture

Look at Gold! Up to $1358 and rising!

Tue, 03/11/2014 - 21:38 | 4536731 fonzannoon
fonzannoon's picture

I see $1,350. where do you see $1,358 and rising?

Tue, 03/11/2014 - 21:39 | 4536736 SilverIsMoney
SilverIsMoney's picture

Kitco... it topped at 1358. We're at 1356 now.

Tue, 03/11/2014 - 21:42 | 4536749 fonzannoon
fonzannoon's picture

Got it thanks. 

Tue, 03/11/2014 - 21:46 | 4536769 James_Cole
James_Cole's picture

Come on folks, do your civic duty and start buying copper futures. 

Tue, 03/11/2014 - 22:17 | 4536879 walküre
walküre's picture

same game, different night

paper gold is bid overnight in Asia and gets sold down the river when either London or Chicago opens

one could almost suspect the paper gold pushers are scalping the Asian buyers

Tue, 03/11/2014 - 22:26 | 4536922 The Vineyard
The Vineyard's picture

Yeah. Yeah.  We get it.  China fall down go boom.  How long have you been predicting this shit?  Bastards.

Tue, 03/11/2014 - 22:53 | 4537027 max2205
max2205's picture

I smell panic. ...short the next rip

Tue, 03/11/2014 - 23:14 | 4537099 Oh regional Indian
Oh regional Indian's picture

Most people are getting ripped in their shorts...

Wed, 03/12/2014 - 06:15 | 4537722 Squid-puppets a...
Squid-puppets a-go-go's picture

yea, its hilarious how on so many closes of western markets the price ends in a 9
$1329, $1339, $1349 - they use just enough dry powder to acheive that 'psychological effect'

Tue, 03/11/2014 - 22:21 | 4536894 booboo
booboo's picture

Hope this translates into cheaper full metal jacket ammo.

Tue, 03/11/2014 - 21:37 | 4536728 GrinandBearit
GrinandBearit's picture

Ahhh shit... my 2 tons of pre-1982 pennies is losing value!

Tue, 03/11/2014 - 21:40 | 4536741 SilverIsMoney
SilverIsMoney's picture

Too bad you can't BTD on those coins...

Tue, 03/11/2014 - 21:54 | 4536793 disabledvet
disabledvet's picture

you could if the Government would mint actual money for the first time in forever.

Tue, 03/11/2014 - 21:42 | 4536750 Rubbish
Rubbish's picture

There is always copper boolits.

Tue, 03/11/2014 - 22:08 | 4536837 HardlyZero
HardlyZero's picture

What the greenies call 'eco-friendly' hunting rounds.

Tue, 03/11/2014 - 21:44 | 4536759 chump666
chump666's picture


Tue, 03/11/2014 - 21:45 | 4536763 fonzannoon
fonzannoon's picture

something looks tired tonight Chump.

Tue, 03/11/2014 - 22:31 | 4536946 chump666
chump666's picture

China's testicles.

Tue, 03/11/2014 - 21:54 | 4536795 greatbeard
greatbeard's picture

>> pre-1982 pennies

Pre 82?  I thought it was post '82.  Dohhh!!!!



Tue, 03/11/2014 - 22:02 | 4536814 cossack55
cossack55's picture

So what is Kyle going to do with that $1 million worth of nickles?

Tue, 03/11/2014 - 21:40 | 4536730 NoDebt
NoDebt's picture

On CNBC they have ONE innane article talking about the drop in Copper being somehow vaguely related to a slowdown in the world economy.  Not a damned CLUE about copper being used heavily as collateral for Chinese loans.

Hats off to the Tylers for their coverage of this (and the related iron ore collateralization scheme) or I would be clueless about these sudden moves.  

That's it.  I'm done making out with the Tylers for a while.  In two weeks I'll be back to asking "what have you done for me lately?"  This is still Fight Club, after all.

Tue, 03/11/2014 - 21:46 | 4536771 beegle
beegle's picture

couldnt agree more , zh rocks

Tue, 03/11/2014 - 23:15 | 4536833 TruthInSunshine
TruthInSunshine's picture

Dr. Copper, give me the news

They've got a bad case of rehypothecation blues

Tue, 03/11/2014 - 22:57 | 4537044 nightshiftsucks
nightshiftsucks's picture

ZH has made me look like a genius,not for investing but all the bullshit games going on.

Tue, 03/11/2014 - 23:44 | 4537213 Dollarmedes
Dollarmedes's picture

I saw an article on Bloomberg about how copper was falling due to the Chinese exports miss (-18.1% YoY) and reduced demand. The article went on to say that copper/iron ore being used as collateral for shadow banking was "anecdotal."

Tue, 03/11/2014 - 21:47 | 4536774 Ban KKiller
Ban KKiller's picture

Gee, there is a worldwide slow down? Just like the slowdown since 2008? Sorry, I missed the recovery in between because I ditched wall street...but I feel cleaner. The slowdown will continue until the reset.

Fiat is still crazy in its race to the bottom. 

Long fish ponds.


Tue, 03/11/2014 - 21:51 | 4536781 prains
prains's picture

copper production is very "whether" related....

Wed, 03/12/2014 - 07:13 | 4537788 BringOnTheAsteroid
BringOnTheAsteroid's picture

What, whether we spell weather right?

Tue, 03/11/2014 - 21:49 | 4536777 SlipStitchPass
SlipStitchPass's picture

Any paper gold gains will be promptly dealt with between 9:30 and 10 am EST. Thank you and please drive through. 

Tue, 03/11/2014 - 21:52 | 4536786 fonzannoon
fonzannoon's picture

Anyone seen Akak lately?

Tue, 03/11/2014 - 22:01 | 4536812 prains
prains's picture

He's helping AnAnalogous repurpose his basement for the Zombie Apocolypse Kegger

Tue, 03/11/2014 - 22:11 | 4536848 Ralph Spoilsport
Ralph Spoilsport's picture

Holy shit! Akak has been banned!

Tue, 03/11/2014 - 22:17 | 4536876 NoDebt
NoDebt's picture

Akak?  Never heard of him.  No such person.

(Holy shit!  Did he get banned or resign his gamertag voluntarily?  He's been wiped from the face of the earth, apparently.)

Tue, 03/11/2014 - 22:20 | 4536888 Ralph Spoilsport
Ralph Spoilsport's picture

We may never know. He never posted anything that outrageous that I can remember.

Tue, 03/11/2014 - 22:25 | 4536914 NoDebt
NoDebt's picture

Yeah, that's pretty much my assessment, too.  I don't recall him running afoul of any stated ZH policies in any serious way.  Others have gone MUCH further in their comments and with much regular frequency before being booted.  That's why I'm wondering if he just hung up his skates or something.  

Wed, 03/12/2014 - 02:55 | 4537569 chumbawamba
chumbawamba's picture

I chatted briefly with Akak earlier today.  He did not get banned nor did he run afoul of any ZH policies.  You folks should just move along, there's nothing to see here.

I am Chumbawamba.

Tue, 03/11/2014 - 22:31 | 4536943 macholatte
macholatte's picture


Holy shit! Akak has been banned!


I protest! Bring that asshat back.

Tue, 03/11/2014 - 22:38 | 4536972 ghengis86
ghengis86's picture

His name was AKAK...

Tue, 03/11/2014 - 22:43 | 4536880 prains
prains's picture

No he's been temporarily "reassigned" to roadside clean up

<----sarc you mort

Tue, 03/11/2014 - 22:18 | 4536883 fonzannoon
fonzannoon's picture

Akak is a good dude and a rational and intelligent person. If he is banned from here we may as well all close up shop.

Tue, 03/11/2014 - 22:20 | 4536892 Ralph Spoilsport
Ralph Spoilsport's picture


Tue, 03/11/2014 - 22:21 | 4536898 prains
prains's picture

and he pounces on Chicom trolls relentlessly, there's no rational reason for him to be banned. I put his absence down to the "weather".

Tue, 03/11/2014 - 23:52 | 4537245 TruthInSunshine
TruthInSunshine's picture

Yep. Akak is a righteous dude who is a Chinabot Troll Slayer.

If he was involuntarily banned, WTF.

Tue, 03/11/2014 - 22:23 | 4536904 LetThemEatRand
LetThemEatRand's picture

For fuck's sake, Akak is banned for what?  

Tue, 03/11/2014 - 22:26 | 4536918 Ralph Spoilsport
Ralph Spoilsport's picture

Question of the day. No clue.

Tue, 03/11/2014 - 22:29 | 4536919 prains
prains's picture

The Chicom agenda must now have a backer at ZH, can they even pronouce ZH?


here's his last comment that i could find;


Sat, 03/01/2014 - 22:36 | 4495442akak
Vote up!

Vote down!


You're apparently treading a very thin and dangerous line there, LTER.  I just saw a similar post get deleted right in front of my eyes a moment ago.  Very sad.

Tue, 03/11/2014 - 22:30 | 4536940 Ralph Spoilsport
Ralph Spoilsport's picture

Comments in ZChat indicate it was voluntary. No explanation given.

Tue, 03/11/2014 - 22:33 | 4536954 prains
prains's picture

then it's just the booze talking, when Ananalogous Anus starts blobbing up he'll be back to clean house

Tue, 03/11/2014 - 22:33 | 4536956 fonzannoon
fonzannoon's picture

well if it's voluntary and you are out there Akak and seeing this, come on back man. 

Tue, 03/11/2014 - 22:38 | 4536967 NoDebt
NoDebt's picture

Oh, goddamit, just when we had a good conspiracy theory going.  Fuck.  You twitchy bastards had me thinking that ZH "hottubbed" one of it's own members.  Fuck.  

Tue, 03/11/2014 - 23:06 | 4537013 LetThemEatRand
LetThemEatRand's picture

I'm thinking it's not voluntary.  It's much easier to stop posting here.  Here's the thread:


akak's picture

Vote up!


Vote down!


You're apparently treading a very thin and dangerous line there, LTER.  I just saw a similar post get deleted right in front of my eyes a moment ago.  Very sad.



Sat, 03/01/2014 - 23:00 | 4495524sylviasays

sylviasays's picture

Vote up!


Vote down!


You're apparently treading a very thin and dangerous line there, LTER. I just saw a similar post get deleted right in front of my eyes a moment ago. Very sad.


That's right, akak and LTER, that post was deleted as part of a vast right wing conspiracy!


Lay off the meth and crack!



Sat, 03/01/2014 - 23:22 | 4495631akak

akak's picture

Vote up!


Vote down!


Pardon me, you pus-oozing scabby snatch, but I WATCHED the post --- along with my attempted response to it --- vanish right in front of me as I was still composing my reply to it.  So kindly go crawl back into your hole (before the crabs crawl back into yours).



Sat, 03/01/2014 - 23:23 | 4495649maskone909

maskone909's picture

Vote up!


Vote down!


Dood holy shit zh has been infiltrated wtf



Sat, 03/01/2014 - 23:25 | 4495659LetThemEatRand

LetThemEatRand's picture

Vote up!


Vote down!


Fucking invaded and an American flag in the shape of a bikini planted here.



Sun, 03/02/2014 - 01:09 | 4496051Greenskeeper_Carl

Greenskeeper_Carl's picture

Vote up!


Vote down!


No shit? Wtf is this place reddit?



Sun, 03/02/2014 - 02:32 | 4496157sylviasays

sylviasays's picture

Vote up!


Vote down!


Pardon me, akak you dickless old troll, but you tried to WATCH the post but your mind was so messed up with coke and meth that your old eyes couldn't focus on the screen.  So kindly go crawl back to your tranny boyfriend. 



Sun, 03/02/2014 - 02:12 | 4496158sylviasays

sylviasays's picture

Vote up!


Vote down!


Pardon me, you dickless old troll, but you tried to WATCH the post but your mind was so messed up with coke and meth that your old eyes couldn't focus on the screen.  So kindly go crawl back to your tranny boyfriend. 

Tue, 03/11/2014 - 22:34 | 4536961 NoDebt
NoDebt's picture

Oh, yeah.  THAT thread.  I remember now.  Damned odd business in that one.  I was scratching my head over that one at the time.  Now doubly perplexed.

Missing airliners with no debris field, now missing ZH members with no debris field.  Time for a late night dip in my hot tub to clear my head, I guess.  Hold my beer, I'll be right back....

Tue, 03/11/2014 - 22:42 | 4536970 prains
prains's picture

that was March 1st, and then nothing, can't see him hanging it up, not his style......


not to worry....he'll be back and benching 2fity

Tue, 03/11/2014 - 22:31 | 4536947 fonzannoon
fonzannoon's picture

That's the question. I know he was frustrated, as are many of us, at certain things lately. If he bagged it and closed his account I wish him all the best. if he was banned then this place died a little.

Tue, 03/11/2014 - 22:39 | 4536975 BlackChicken
BlackChicken's picture

I'm hoping it's due to heavy workload; there is a surge of work up here right now and a shortage of available housing.

If your around in ER AKAK, let me know and I would gladly buy you a beer.

Tue, 03/11/2014 - 22:30 | 4536939 BlackChicken
BlackChicken's picture

I agree Fonz. We should at least know WHY...

Wed, 03/12/2014 - 03:01 | 4537572 chumbawamba
chumbawamba's picture

Yours is not to know why.  Yours is only to say bye.

I am Chumbawamba.

Tue, 03/11/2014 - 23:08 | 4537081 tmosley
tmosley's picture

What the actual fuck?  We have been enemies of late, but there is no reason for him to be banned.  I have more reason to be banned than him, given the extreme stance ZH has taken on "racism".

Tue, 03/11/2014 - 23:16 | 4537106 LetThemEatRand
LetThemEatRand's picture

His name was Tyler Durden.

Tue, 03/11/2014 - 21:52 | 4536787 Debtonation
Debtonation's picture

Is there a way to short vacant home pipe and wiring?

Tue, 03/11/2014 - 21:53 | 4536791 Debtonation
Debtonation's picture

Or maybe this is bullish and I should be long? Huh!

Tue, 03/11/2014 - 22:19 | 4536884 NoDebt
NoDebt's picture

All kidding aside, no, this one is not bullish.  Not this time.

Tue, 03/11/2014 - 22:11 | 4536849 runswithscissors
runswithscissors's picture

BTFD, the bank now refuses to sell me boxes of nickles or cents...they don't have them in the vaultand have to "order them"

but they can give me all the paper FRNs I want...WTF???

Tue, 03/11/2014 - 22:50 | 4537016 ghengis86
ghengis86's picture

why is that WTF?  paper beats rock (in the new normal)

Tue, 03/11/2014 - 22:12 | 4536856 RockyR
RockyR's picture

clearly what's needed here is more obamacare.

Tue, 03/11/2014 - 22:24 | 4536861 HardlyZero
HardlyZero's picture

Been long Gold and Silver for 8 years.

Last year tried out Russell and QQQ my shorts finally fit !!


Deflation, monetary collapse, and market collapse concurrently should cause Gold and Silver up in massive adjustments.

Copper wll go down since it is all industrial, but need a lot of leverage to short Copper.

Tue, 03/11/2014 - 22:14 | 4536865 Let them eat iPads
Let them eat iPads's picture

Is China's credit bubble imploding or not?

I wan't to know when I can point and laugh at those fuckers.

Tue, 03/11/2014 - 22:21 | 4536896 walküre
walküre's picture

Start laughing now but make sure you're having the last laugh. Unfortunately our TBTF and stupid elite have sold us out to the China fraud for 2 decades at least. The Chinese bought a ton of assets in the West and are in a position to threaten our destruction if we don't bail them out or accept their lying and cheating as centrally planned truth.

Tue, 03/11/2014 - 22:30 | 4536941 Let them eat iPads
Let them eat iPads's picture

Yeah well, Japan was supposed to take us over 30 years ago and look what happened to them.

These slimy Chinese thieves will fall 10 times harder.

Tue, 03/11/2014 - 22:15 | 4536869 TheCosmicTaco
TheCosmicTaco's picture

Here's a little message to every zerobrain ZH poster from Podunk Iowa, you guys with your five million rounds of AR15 ammo buried in your basement, China, that is, the country known as China with 1.7 billion inhabitants, is using about half of the copper in the world.

So if you are paging Dr Copper, you better be speaking Mandarin, baby, not Amerimexicano or whatever version of English is used in the States these days.

You see Dr Copper, yell NI HAO!

Dr Copper was last spotted in a backstreet massage parlor in Dongguan getting an iced tea BJ. Dr Copper is feeling a lot better now, but his dipstick is pointing DOWN.



Tue, 03/11/2014 - 22:32 | 4536952 Let them eat iPads
Let them eat iPads's picture

There's 1.7 billion of those locusts now?

God, they added an entire USA to their population since last week.

Tue, 03/11/2014 - 22:43 | 4536989 Ness.
Ness.'s picture

Let's review.  China has been hoarding copper (and gold).  China and Russia are becoming quite the close friends as of late.  Copper is used when manufacturing bullets.  The DHS is buying massive amounts of ammo (for our own  safety, of course).  Russia annexes Crimea with China's approval.  

What could China doing with all of that copper?



Tue, 03/11/2014 - 22:21 | 4536897 mendigo
mendigo's picture

Theres something wrong with that copper chart

I didnt think is was possible for a chart to trend that way

That chart is inconsistent with my understand of the world in which we find ourselves

Tue, 03/11/2014 - 22:39 | 4536978 chump666
chump666's picture

And the collateral for miners is....?  Get ready for the margin calls.  HFTs awaiting the talking heads from Chinatown to Oblunder to Vlad to Yelland to that disgusting a-hole at the ECB.   So far they are bid on the PBoC who are about to print on lower the RRR rate or build a warship or two.

Beautiful World

Wed, 03/12/2014 - 02:50 | 4537055 TheRideNeverEnds
TheRideNeverEnds's picture

Surely this flagging demand for HG is bullish.  I am pretty sure it means the economy has finally reached escape velocity because we no longer need to build actual things, we can just sell each other our houses and use our easily obtained obamabux to purchase more e-minis and fake likes on FB; next stop the moon!  


Tue, 03/11/2014 - 23:20 | 4537117 chump666
chump666's picture

Shanghai is bid, money printers are on.  Now back to the missing plane.  rumors that Malaysia military are covering something up, deny it flew off course. 

Tue, 03/11/2014 - 23:51 | 4537222 The Most Intere...
The Most Interesting Frog in the World's picture

CNBC Headline: Markets watching to see why copper getting scorched


Tue, 03/11/2014 - 23:47 | 4537231 LetThemEatRand
LetThemEatRand's picture

Free Akak.

Wed, 03/12/2014 - 00:01 | 4537275 Josh Randall
Josh Randall's picture

AkAk, we hardly knew ye

Wed, 03/12/2014 - 04:18 | 4537371 Manipuflation
Manipuflation's picture

AKAK is a good guy.  AKAK battled with Jon Nadler on Kitco back in those days before ZH even existed.  I do not see any reason why he should have been banned.  I might forget what we all said yesterday but I will never forget what AKAK did.



Wed, 03/12/2014 - 01:02 | 4537419 prmths2
prmths2's picture

I don't know anything about AKAK but after reading the posts here I looked for his last post and found this:


What is curious here is that while it is clear why Russia would benefit from an escalation in hostilities in the Crimea - i.e., allowing it a clear pretext to enter the "east" and "protect" its citizens - what is becoming clear is that it is Ukraine that is desperate to raise the hostility level.

Fuck you, Tyler(s).

When did ZH became a branch of Russian state media?

Go ahead and ban me already --- I am tired of this blatant one-sided bullshit.  If I wanted to be told what to think, I would watch FOX News.



Wed, 03/12/2014 - 07:23 | 4537797 BringOnTheAsteroid
BringOnTheAsteroid's picture

Are you allowed to say "Fuck you, Tyler(s)". Like the comma creates a reaql pause for effect there and am just wondering if that is crossing ZH's red line.

Wed, 03/12/2014 - 05:54 | 4537704 kenezen
kenezen's picture

WE are about to see much weaker Stock market movement. Look to S&P beginning down. 

Do NOT follow this link or you will be banned from the site!