Chinese copper scrap buyers sitting tight as holidays cloud market

Sep 28, 2010 | 08:38 AM | Shi Lili

Two holidays have left a cloud of uncertainty over the Chinese copper scrap market, leaving the industry drifting in a wait-and-see mode after a month-long upsurge.

China's Mid-Autumn Holiday (Sept. 22-24) and the upcoming National Holiday (Oct. 1-7) has left most scrap dealers willing to sell their copper scrap stocks.

The market cooled down dramatically after Sept. 21, reflected in the small number of deals being concluded on the spot market. Both buyers and sellers are unwilling to go long in the market.

"I only feel safe with cash in my hands. Although the fourth quarter is usually deemed to be a high-consumption season, who knows what kinds of policy Chinese government is about to release in a short period, especially seeing that there are constant rumors the central bank is going to raise the interest rate," said one copper scrap buyer who has a yard in Nanhai, in China's southern coastal province of Guangdong. "This will no doubt be a death blow to metal prices so I would rather sell out at the present price, which is almost the highest point since the beginning of this year."....

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