{"id":59206,"date":"2011-11-24T09:56:10","date_gmt":"2011-11-23T22:56:10","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/11\/24\/copper-trying-hard\/"},"modified":"2011-11-24T09:56:10","modified_gmt":"2011-11-23T22:56:10","slug":"copper-trying-hard","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/11\/24\/copper-trying-hard\/","title":{"rendered":"Copper Trying Hard"},"content":{"rendered":"
\n\tBy Jonathan Barratt<\/span><\/div>\n
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\n\tThe copper market remains fixated on the issues in Europe and the US over the sovereign debt concerns however, further a field in China, copper imports remains robust. It is interesting to see this even after the surprise announcement that China had inventory levels of close to 1.3 million tonnes<\/span>. China remains the number one consumer of copper in the world and this month’s imports are showing us a completely different picture.<\/div>\n
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\n\tIn the wake of what many see as an economy slowing down China’s October trade data provided a completely different picture for the metal. Copper imports rose for the fifth straight month reflecting an economy that continues to import more and more copper. China imports of copper rose to 383,507 tonnes<\/span> which is up 40.2% from a year earlier. The pace of China’s economy is dictated by two main drivers; the external demand for fabricated goods and the internal demand for infrastructure and construction. We are fully aware of the concerns in Europe and now the US and this will ultimately affect the demand for the metal going forward so far the market is pricing in a soft option for demand. In China, the internal demand picture is mixed, on the one hand we have a surplus of the metal, and then on the other hand imports are strong. In addition to this we have suspected that China has been destocking<\/span> or in fact just consuming, however the pace now appears to be quiet frantic.<\/div>\n
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\n\tExchange inventories at the Shanghai Futures Exchange have hit a four month low at the end of October and copper stocks in a bonded warehouse in Shanghai have come in to about 200,000 tonnes<\/span> which are said to be “normal”. The strong premiums paid for copper for both Shanghai bonded metals and imports are indicative of the demand for the metal for the region. We have suggested in previous Bulletins that the main reason for demand has to do with the increased level of infrastructure projects currently under way. The main infrastructure program is the upgrading of the national power grid, which over five years will cost $390.63 billion and will result in significant ongoing demand for the red metal as we head into 2012.
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\n\tAlthough this suggests a bullish outlook for the metal into 2012 we have to deal with the current fundamental picture. There are still stiff head winds from Europe and the US which will dampen this bullish optimism. 
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\n\tKeep an eye on US300<\/span>.
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\n\tChart point:<\/u><\/div>\n
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\n\tThe market continues to consolidate and as suggested from last week we have a negative bias. At the moment we focus towards US320<\/span> as a key level of support. Momentum indicators remain weak and we still see lower end support coming in at US315<\/span>. We expect to see more consolidation within the trend lines outlined below. <\/div>\n
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\n\tProduced by Jonathan Barratt<\/span> direct from the trading desks of Commodity Broking<\/span> Services, Barratt's<\/span> Bulletin provides expert analysis of commodity markets, global indices and foreign exchange movements. Click here <\/a>to take a no obligation 21-day trial to Barratt's<\/span> or to learn more visit www.barrattsbulletin.com<\/a>. Content included in this article is not by association necessarily the view of FNArena<\/span> (see our disclaimer).<\/em><\/div>\n

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\n\tThis report is not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, products, securities or investments. This report does not, and should not be construed as acting to, sponsor, advocate, endorse or promote products or any other products, securities or investments. This report does not purport to make any recommendations or provide any investment or other advice with respect to the purchase, sale or other disposition of products, securities or investments, including, without limitation, any advice to the effect that any related transaction is appropriate for any investment objective or financial situation of a prospective investor. A decision to invest in securities or investments should not be made in reliance on any of the statements in this report. Before making any investment decision, prospective investors should seek advice from their financial advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.<\/i><\/p>\n

\t <\/p>\n","protected":false},"excerpt":{"rendered":"

Jonathan Barratt of Barratt’s Bulletin notes robust copper demand from China, but is this enough to overcome European fears?<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[23],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59206"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=59206"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/59206\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=59206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=59206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=59206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}