High copper tags curb Chinese demand

Oct 13, 2005 | 02:16 PM | Vivian Teo

High copper prices are discouraging buying in China, although material is available for those willing to pay for it, according to market participants.

Record prices on the London Metal Exchange and the Shanghai Futures Exchange (SHFE) have prompted buyers to keep inventory levels low and purchase only when necessary, traders and analysts said.

"The current high prices have checked demand to a certain extent, as nobody wants to buy and hold stocks at this price level," a metals analyst in Shanghai said.

Some customers are requesting that contract deliveries be delayed in the hope that prices will fall. "They may order 30 tonnes from you, but ask that you only deliver 10 tonnes at first," a Shanghai trader said. Buyers pay spot prices upon delivery, meaning they would benefit from a fall in price.....

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