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...
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%.