copper stocks declining rapidly, page-26

I'm still bullish on Cu and SRQ even though both were under pressure again last week.
The fact that LME Cu stocks are declining again at a rapid rate means that when the current geopolitical situation blows over fundamentals will take over again. The fact that cancelled warrants have increased means that Cu buying has resumed and that Cu stocks will decline further.

“For the moment, stock moves and fundamentals will take second place to the worsening geopolitical situation,” Mark Newson-Smith, head of metal sales at Xconnect Trading Ltd., said by for Bloomberg today. “Equities will be under pressure and sentiment poor so liquidation is likely in the short term.”

In the metals, the copper price was last at $7,019 per tonne, down $46 on Thursday's close, despite stocks dropping a net 875 tonnes to 157,700 tonnes and a 2,300-tonne increase in cancelled warrants. In the forward curve, the benchmark cash/three spread remained in a contango of $4.