Incentives unhealthy for copper: Codelco chief
Apr 10, 2013 | 01:04 PM
| Andrea Hotter
SANTIAGO, Chile Incentivizing coppers movement into London Metal Exchange warehouses for financing deals is unhealthy and doesnt reflect the underlying market fundamentals, Corporación Nacional del Cobre de Chile (Codelco) president and chief executive officer Thomas Keller Lippold said.
While producers might see short-term benefits in higher premiums, delays in accessing material in warehouses due to long queues are also not a healthy situation.
"In the longer term, I dont think its a good thing for the industry that there are quasi-artificial incentives that dont let the underlying market conditions fully express themselves in terms of prices," he told AMM. "Its not very healthy that it takes four to five months to take material out of the marketthat is not a reflection of a well-functioning market." ....
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