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..


Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
SilverIsMoney's picture

Look at Gold! Up to $1358 and rising!

fonzannoon's picture

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

SilverIsMoney's picture

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

James_Cole's picture

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

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

The Vineyard's picture

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

max2205's picture

I smell panic. ...short the next rip

Oh regional Indian's picture

Most people are getting ripped in their shorts...

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'

booboo's picture

Hope this translates into cheaper full metal jacket ammo.

GrinandBearit's picture

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

SilverIsMoney's picture

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

disabledvet's picture

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

Rubbish's picture

There is always copper boolits.

HardlyZero's picture

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

fonzannoon's picture

something looks tired tonight Chump.

greatbeard's picture

>> pre-1982 pennies

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



cossack55's picture

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

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.

beegle's picture

couldnt agree more , zh rocks

TruthInSunshine's picture

Dr. Copper, give me the news

They've got a bad case of rehypothecation blues

nightshiftsucks's picture

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

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."

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.


prains's picture

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

BringOnTheAsteroid's picture

What, whether we spell weather right?

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. 

fonzannoon's picture

Anyone seen Akak lately?

prains's picture

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

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.)

Ralph Spoilsport's picture

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

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.  

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.

macholatte's picture


Holy shit! Akak has been banned!


I protest! Bring that asshat back.

prains's picture

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

<----sarc you mort

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.

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".

TruthInSunshine's picture

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

If he was involuntarily banned, WTF.

LetThemEatRand's picture

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

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.

Ralph Spoilsport's picture

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

prains's picture

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

fonzannoon's picture

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