COMMENT: The Comex copper conundrum
Oct 23, 2013 | 01:07 PM
| Andrea Hotter
NEW YORK Much has been made of the disappearance of copper from Comex warehouses in the United States, but the simple reality is production and quality issues in South America have added some impetus to the movement of metal in the region, with miners having to buy warrants to ship copper to customers.
This is showing up in stock data, with copper moving out of Comex warehouses as producers make up for shortfalls in deliveries to consumers.
A year ago, Comex copper stocks were at about 55,000 short tons. Inventories peaked at the start of June at a little more than 86,000 short tons before declining steadily to current levels of 28,000 short tons, almost a five-year low.
A couple of hefty declines in New Orleans hastened the trend in August, with a significant portion of this metal moving to a nearby major U.S. consumer.....
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