Network Metals LLC

After a day off trading yesterday, Shanghai copper followed copper’s rise by jumping 5% today. Analysts are talking about copper inventories in Shanghai and London, which have dropped on the month and year, and there have been larger reports of cancelled warrants, but no one really seems to think the buying is demand-driven. Fundamentals have not changed, and the Chinese buying for reserves does not constitute greater consumption – this is most likely continuing tightness from the scrap markets contributing to Chinese buying.