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An illustration of the tight copper supply in China

This chart is a regular visual at The IKN Weekly. Check out the 2022 YTD line for copper inventories at the Shanghai SHFE warehouses, data from Chile’s Cochilco:

It’s not just the low 55kmt level, it’s the seasonality as in a couple of weeks’ time, the annual drawdown begins as China’s end-users gear up for their standard re-stock and they suddenly realize how little copper there is to draw upon. Hilarity ensues.

8 Comments

    Also fun: the commercials have gone long for the last two weeks; the specs are short. Commercials long, specs wrong? Most often. Comparing 1 yr charts of COTs and price can be a useful tool; better than seasonals which tend to work only when you don’t play them.
    https://snalaska.us/cot/current/charts/HG.png
    Not a coincidence:
    https://tradingeconomics.com/commodity/copper

    Reply

    So, which wins out: tight supply or global demand destruction. My money is on supply, but my money doesn’t always win.

    Reply

      This thread inspired me to try to get some information on Chinese demand for copper subsequent to the collapse in their real estate market. Without the furious building that was going on up until only about four months ago is their demand for copper decimated?

      Reply

    This thread inspired me to try to get some information on Chinese demand for copper subsequent to the collapse in their real estate market. Without the furious building that was going on up until only about four months ago is their demand for copper decimated?

    Reply

    So, Seth. What information did your inspired search yield? What is the answer to the question?

    Reply

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