Curiously enough stockpiles are still falling. Without a reversal of this trend I would tend to think the sell off won't last long.
A decrease of Chinas imports by 21% as compared to a year ago needs to be seen in context. A year ago LME inventories were being depleted at a rate of 2000-4000 tonnes per day. That rate was completely unsustainable, the drop was near verticle. Current rates of depletion is still around 200 - 1000 tonnes per day. It has slowed down but hasn't reversed.
Financial markets are easily spooked as there is a lot of money on the table up at these record levels. These traders are still playing by the old rules, I personnally think US$ are being traded for commodities, especially by the Chinese, while the going is good. The US$ is looking increasingly shakey.
While this divestment of $s and the hoarding continues we'll have firm commodity prices going forward... we'll see.
AVM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
