Copper stocks are continuing on their downward slide.
"Copper inventories held in LME-bonded warehouses fell by 1,175 tonnes to 368,825 tonnes, the lowest levels in one year, the latest data showed."
The problem is that a lot of traders think that Cu is too high at present.
"Even though copper supply remains tight, buyers are reluctant to chase prices higher at these levels, two London floor traders said. "I think metals are gearing up for a correction. It's overdue. I think a month from now, metals prices will be lower," one of them said."
I'd bet that these traders will be proved to be wrong, we may see a small pullback, but it will only be a short term blip, as what must be looked at is the LME Cu Stocks, and how will it be possible for these LME stocks to gain again.
Most traders and analysts do not really understand Asia, most have never been away from their computer screens in London or New York, and if they ever did venture to China you can be sure that they never saw more than a few 5 star hotels in Shanghai or Beijing. They never visit places like Kunming, Chengdu, Chongquing, Yichan or Tunuxi etc etc. The population of Chongqing on October 24th 2010 is approximately 31,570,596. This is but one city in China with 1.5 times the population of Australia.
ABY Price at posting:
$1.21 Sentiment: Buy Disclosure: Held
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