Copper Stockpiles
Posted: Wed Jun 15, 2011 10:09 am
Market Harmony wrote: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.