SPOTLIGHT: Why you should pay attention to these China-based metal funds

If copper traders outside China were not paying attention to China’s commodity hedge funds before a certain day in March earlier this year, they certainly have been since then.

On March 7 – subsequently dubbed Black Friday (at least by those positioning themselves more for a modest rally than a 4% fall in prices) – short-selling of LME copper contracts by China-based funds had a persistence and aggression that marked the latter’s size and significance.  “The selling of copper out of China in the domestic and international markets was just relentless on March 7, and people have paid more and more attention to it subsequently. “I’ve never seen anything like it. For us, the old rules have gone out of the window: these companies have a lot of power,” a senior...

Published

June 25, 2014

12:00 GMT

London