China panic buying copper27 Aug 2020 06:56
Signs of panic buying
The effect of this is most visible in the fall in stocks around the world.
Total visible stocks globally, which include those on exchanges and bonded warehouses in China fell by 40% from March to end-July to below 600,000 tonnes. Inventories in LME warehouses are at 13-year lows.
China is responsible for more than half the world’s copper consumption and the country is sucking up copper at record-setting rates.
“China is importing more refined metal from nearly every country suggesting a structural shift not a temporary change,” says Barnes.
“If you are looking for signs of panic buying, you can find evidence of that in China – total Chinese stocks represent less than two weeks’ consumption at current rates of use.”