Copper stocks don’t affect prices: SEC

Nov 09, 2012 | 08:22 AM | Andrea Hotter

Tags  copper, Securities and Exchange Commision, SEC, exchange-traded funds, ETFs, JPMorgan, Southwire, Encore Luvata

NEW YORK — In a potential blow to copper market participants opposed to the launch of physically backed exchange-traded funds (ETFs), the U.S. Securities and Exchange Commission (SEC) has said there is no strong correlation between copper inventories and prices.

Fund flows into ETFs don’t lead to changes in underlying metals prices, the regulatory agency said. It also found "no evidence" of a relationship between the effects of changes in the supply of copper on market prices, nor is there a correlation between London Metal Exchange settlement prices and the amount of copper on LME warrant, it said. ....

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