Guys,this is an article released overnight from Mining.com The...

Guys,

this is an article released overnight from Mining.com
The article states that global copper stocks are currently down to 3 days of consumption. Looks like Goldman Sachs was right last year!

Copper price: Global stocks are down to three days’ consumption

Copper price: Global stocks are down to three days’ consumptionFrik Els | February 9, 2022 | 9:11 am Markets Australia Canada Europe Latin America USA Copper Dropping the ball on copper stocks: Image: Hans Splinter via FlickrOctober 2021’s copper squeeze sent the bellwether metal into record territory – now warehouses again only have enough metal to last a long weekend. After a 26% rise in 2021, copper prices have struggled for direction this year. On Wednesday, March futures made another attempt to find a new trading band, rising to $4.58 a pound ($10,095 a tonne), a level the bellwether metal has bounced off twice before this year. New York copper shot up to an intra-day price of $10,770 a tonne in May last year and attempted to scale record-levels again in mid-October. The second spike was blamed on a scramble for prompt delivery metal after copper warehouses were emptied out and available LME inventories fell to their lowest since 1974. Cash premiums on the LME hit an unprecedented $1,103.50 a tonne vs this week’s level of $29.25 (read Andy Home’s latest for more on the LME copper squeeze).Copper stocks are once again approaching historically low levels, with only 200,402 tonnes of available inventory officially held by the LME, Comex and SHFE, with New York responsible for more than half the total. Drip release That does not even cover three days of global consumption, which, according to Goldman Sachs estimates surpassed 30 million tonnes for the first time last year. It compares to commercial stocks of oil which consistently average 60-days or more. Copper markets are not as liquid as crude, but the oil market is not unfamiliar with inventory shocks either. Source: S&P Global 2022 Forecast: Base metals spotlightThat’s why countries like the US have strategic stockpiles of more than 700 million barrels that can keep the entire world well-oiled for months. The copper equivalent held by the Chinese National Food and Strategic Reserves Administration is estimated to be around 2 million tonnes of copper. In reaction to the May record setting copper price, China auctioned off for the first time since 2005 metal from its reserves. It came to fewer than 100,000 tonnes, which to no-one’s surprise did not cool markets inside or outside the domestic market.