Network Metals LLC

Here we go again: with LME stockpiles falling throughout the last few weeks, we are starting to see numbers trickling in that tell us exactly where all the London copper and other base metals ended up during the base metals rally. Shanghai futures have fallen today, and London prices still look weak after taking losses on Friday; this is, in no small part, because of rising Chinese stockpiles. The Chinese State Reserves Board and other Chinese buyers have increased their reserves entirely without a significant rise in actual consumption, and as we have suggested for the last few weeks, we may see copper heading back down on its ‘W’ path fairly quickly.


***The New York Hard Assets Metals and Mining Conference is taking place today and tomorrow. We will have details and analysis of this event later on this week.