The things we learned during Cesco Week

With copper cathode starting to move out of China, one of the key talking points is how much will come out, and where it will end up.

Traders have been moving material into warehouses in Korea, and have even been trialling shipments as far afield as Rotterdam and Antwerp, where premiums are looking increasingly attractive.

But while there is a lot of stock in China, fears of a mass unwinding of the financing deals in the country are overdone, as Goldman Sachs’ Max Layton pointed out. There could be up to a million tonnes of cathode locked up in Chinese copper financing deals, he says, but because the ‘hot money’ invested in it accounts for a third of the country’s monetary supply system, the state will be...


Mark Burton

Andrea Hotter

April 11, 2014

08:43 GMT