Warehouse deals distort copper prices
Oct 16, 2012 | 02:25 PM
| Andrea Hotter
Tags
Antofagasta,
Diego Hernandez,
copper,
Chile,
warehouses,
copper prices,
Andrea Hotter
LONDON — Copper prices are undergoing short periods of distortion due to warehouse financing deals, but the effects have been limited, according to Antofagasta Plc’s top executive.
Financing deals that lock up copper in warehouses can tighten the market and create price volatility, Diego Hernandez told AMM sister publication Metal Bulletin.
"There are some traders sending material to warehouses, and there can be very short periods when prices are distorted as a result," the head of the Chilean producer said. "But in the medium to long term, the copper price reflects the underlying fundamentals of the market, which is a tight supply-demand picture."....
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