July 2012 | Base Metals
Another lurch lower is still a risk in the near term: Copper - Market Analysis
We were not surprised to see the rally reverse and reiterate our view that there are more downside risks in the short term than upside potential. The $7,000/tonne level is still likely to come under pressure in the coming weeks. Chinese imports declined 18% between May and June, and should continue to fall, or at least remain depressed, as borrowing costs in China will continue to decline, reducing demand for copper for financing.
Chinese imports down yet again in June...Provisional Chinese import data for June was published this morning. It showed that arrivals of refined copper, alloy and products totalled 346,223 tonnes in the month, 18% lower than the level recorded in May, but still higher than the 280,009 tonnes reported for June last year. If we assume that imports of only cathode also fell by 18% from May, then June’s level would have been 255,920 tonnes. This is less than the 280,000 tpm that...
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