From the WSJ:
A trader, whom the exchange hasn't identified, owns between 50% and 80% of the 355,750 metric tons held in LME-listed warehouses. This amounts to more than 177,875 metric tons of copper, valued at about $1.5 billion.
From Bloomberg:
The dominant holding has created an “anomalous” and “unsustainable” market tightness. The immediate-delivery metal’s premium jumped 29 percent to $74 a metric ton today. Prices moved to a backwardation, when nearby copper trades above longer-dated contracts, indicating concern about near-term supply.The copper market is nervous as no one knows how the nearby tightness resolves itself. The "unidentified party" is ripping off the Chinese, who need the copper most. For the Chinese, a capitalist bloodsucker. For the small-time speculator, an opportunity. Buy copper and sell a split second before the unidentified does.
4 comments:
You may have to change your blog title to "The Learning Diary of an Israeli DROUGHT Engineer". Your Nov 3 blog was right on topic as NPR in the US reported the dire water condition of the Israeli State
http://www.npr.org/player/v2/mediaPlayer.html?action=1&t=1&islist=false&id=131747291&m=131747331
Stay cool
Steve Davidson, PE
Humboldt County, Ca USA
No rain in the whole Middle East. Very bad.
Sooner or later the price will fall quite steeply; and then re-establish itself at a realistic level. Sooner, I would say.
Anon.
The unidentified party is intending (I would be intending in his place) to sell his copper at the highest price possible. He will not bring to the market but small doses of merchandise, so prices will not fall steeply. Except if he sells all to the Chinese in a coup de main.
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