Physical copper premiums could rise as much as 30% in 2014 as Chinese financing demand increase, according to a senior analyst at Barclays Capital Plc.
China has surprised with the strength of its recent demand, driven by renewed import financing, Nicholas Snowdon said during an American Copper Council meeting this week in Miami. He added that was the reason why cancellation have soared in London Metal Exchange warehouses in Johor, Malysia, as material has flowed into China.
More than 200,000 tonnes of copper stocks have left LME warehouses across the network, Snowdon said, much of it destined for Chinca.
Excerpts from American Metal Market November 14, 2013
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