srb selling copper

is China playing game ? SRB selling could put pressure on copper price...

Shanghai copper contracts limit down on talk over SRB selling

Hong Kong (Platts)--21Apr2009
Copper futures prices settled at their downside limit on the Shanghai
Futures Exchange Tuesday due to heavy selling activity in reaction to market
talk over China's State Reserves Bureau selling copper in the spot market,
according to local industry sources.

Copper futures prices for May 2009 to April 2010 forward contracts on the
Shanghai Futures Exchange have hit their 5% limit-down Tuesday.

The most-actively traded July 2009 contract closed at Yuan 37,370
($5,468)/mt, down Yuan 1,970/mt or 5% compared with Monday's settlement price
of Yuan 39,340/mt.

One Beijing-based trader said copper prices were down due to market
rumors over China's State Reserves Bureau selling copper in the spot market.
"We are not sure about the quantity being sold by the SRB but prices are
pressured down by rumors over more supply in the spot market."

A copper analyst from Beijing Antaike, the state-run nonferrous metals
information provider, added: "There has been market talk over the SRB selling
slightly more than 100,000 mt of copper in the spot market."

The SRB's strategic moves on metals sales had always been kept
confidential and there had been market talk early this year that it had
purchased about 300,000 mt of copper as strategic reserves in the first
quarter of 2009 when copper prices were lower.

"We have no idea on the quantity of the SRB's selling of copper in the
spot market but the selling moves could be true ... It's probably a good time
for the SRB to sell copper as prices surged a lot recently and the move is
able to help stabilise copper prices," the analyst said. "The market is a
little irrational without much fundamental support ... copper prices may move
down more in future and in the short-term may test lower at around Yuan
30,000/mt."