Network Metals LLC

The only buyer in the market has now turned seller: we are hearing and seeing today that the Chinese State Reserves Bureau has been selling off its imported copper into the Chinese markets, albeit quietly. After the SRB’s huge buying spree over the past few months, which we have been consistently talking about, this is really very bearish news all around. If the selling continues or increases in volume, prices will come down and the arbitrage opportunity for imports will disappear. At the risk of beating a dead horse, until we get some real demand from consumers, whether in China or outside, we just don’t see prices running away right now.