Traders see cathode moving to China after cancelled warrants jump by most in seven months

Most of the 37,375 tonnes of copper cathode that was ordered for withdrawal from London Metal Exchange warehouses on Monday will be delivered into China, traders believe.

The cancellation on October 26 was the largest seen since March 18, and at nearly 90,000 tonnes, the volume of LME-listed copper held for withdrawal is now at the highest level since June. The cancellations were seen across warehouses in Asia, Europe and the USA, and the largest was in Rotterdam, where 16,375 tonnes of cathode was cancelled, an amount equivalent to nearly 40% of the stock there. Cancelled warrants also rose by 16,175 tonnes across all warehouse locations in Asia, while 5,400 tonnes was also cancelled...


Mark Burton

October 26, 2015

16:27 GMT