Copper Is Crashing After Huge Spike In Inventories

Tyler Durden's picture

Copper futures are tumbling by the most in 2 months (testing back towards 4 month lows) after the biggest two-day increase in copper stockpiles monitored by LME since 2004.

Dr.Copper is sick...

 

As LME Copper inventories explode higher...

 

As Bloomberg details,

Copper held in Asian warehouses tracked by the London Metal Exchange jumped 50 percent in the past two days, the most in seven years.

 

 

Supplies are moving to Singapore, South Korea and Taiwan from China, where stockpiles tracked by the Shanghai Futures Exchange have almost halved since mid-March.

 

Base metals are still trading at "relatively low levels," Jens Naervig Pedersen, a senior analyst at Danske Bank in Copenhagen, said by e-mail. "Uncertainty over the outlook for global manufacturing is outweighing the positive effect of the lower dollar," he said.

Whether this is more CCFD unwinds or the hangover from the massive speculative bubble of the last 3 months is unclear but the inventory spike in almost without precedent.

This plunge in copper prices is especially notable as the reflation trade appears to have got hold of China commodities once again with Dalian up over 3% overnight, Rebard up over 2% and Shanghai Iron Ore up almost 3%.

Comment viewing options

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

 

 

What are the odds that the copper market is more logical than the crude oil market?

 

 

Killtruck's picture

C'mooooonnnn, Silver! Get down around the $12 so I can refinance the house and fill a tractor-trailer with you.

Killtruck's picture

Errr...I mean, fill a leaky and in no way seaworthy vessel with you..

knukles's picture

Hah ha ha ha ha
Fuck you, Goldman.
Got all the commodities in warehouses so you can leak the product out and cause commodity price inflation.
Well, how's this workin' for ya', assholes?

Tarzan's picture

Looks like a correction to me, not a collapse...

Hyperbole much, ZH?

zeronetwork's picture

I say bearish for gold.

peddling-fiction's picture

@29.5 The odds are good.

I believe more in copper fluctuations.

Latitude25's picture

Dr Copper has been replaced by Mr Yellen's fantasy.

nibiru's picture

thinking of Janet fantasizing makes me puke. Let's scratch that and think about 'Yellen's nightmare'.

 

 

F. the FED   http://independenttrader.org/century-of-enslavement-the-history-of-the-federal-reserve.html

gaoptimize's picture

Did someone call a doctor?

no ita lever's picture

Dr. Copper to the white courtesy phone please...Dr. Copper.

Fish Gone Bad's picture

Here comes $2 copper and it will make a lot of other things quite sick...

swamp's picture

Not crashing. Eing manipulated and PUSHED down.

no ita lever's picture

Ignore Doctor Copper at your own peril. Heck, I am bullish now! DOW 20K hoot hoot, I mean this is insanity!

YBIC

Ajax_USB_Port_Repair_Service_'s picture

Barista's don't use copper.

Stu Elsample's picture

matters not to black ghetto trash...they will still break into basements for the copper pipes (crack money)

de3de8's picture

Yeah,just more basements now