Copper Stockpiles

[ibeakc]

I thought this was good news.


http://www.bloomberg.com/news/2011-06-15/copper-users-in-china-plunder-stockpiles-as-goldman-forecasts-record-rally.html

[creshka46]

I read that too, definitely good news. I wonder, if we hit $5+/lb copper, how many more people will get drawn into hoarding. I can't decide whether that would be a good thing or a bad thing. On the one hand, copper would dry up faster which might expedit the recall on the melt ban. On the other hand, no more easy money....

[reddirtcoins]

So 5.40 a lb and 3.72 cents each, is that right?

[creshka46]

"Goldman Sachs Group Inc. (GS) anticipates copper trading at an all-time high of $11,000 a ton in 12 months as mining companies fail to keep pace with demand."

I'm pretty sure they mean metric tons so that would put it right at $5.00 (3.25 cents each)

[Market Harmony]

There are 2 ways to look at this, and they are opposites.

Bullish: restocking will affect the supply-demand equilibrium, thus copper price increases
Bearish: current lower stockpiles are in anticipation of declining future demand, which if correct, would cause prices to decrease

If you could accurately answer, "why are the stockpiles declining?" Then the type of relationship between future copper price and current Chinese stockpiles might become a little more clear.

[highroller4321]

There are 2 ways to look at this, and they are opposites.

Bullish: restocking will affect the supply-demand equilibrium, thus copper price increases
Bearish: current lower stockpiles are in anticipation of declining future demand, which if correct, would cause prices to decrease
If you could accurately answer, "why are the stockpiles declining?" Then the type of relationship between future copper price and current Chinese stockpiles might become a little more clear.

“Metal has been leaving the bonded warehouses at quite a steady pace because it is the peak-demand season,” said Jia Zheng, a trader at Shanghai East Asia. “China is still growing, which is keeping demand robust.”

[rickygee]

As copper prices rise, so does copper theft. Got the link for this story from Rawles' site.

http://sanfrancisco.cbslocal.com/2011/0 ... /#comments

Friggin' idiots.