With the Chinese now back from a week long holiday, the expectation was that many would confidently come back into the market, however this does not seem to have transpired as yet. With the debt crisis still looming in Europe & nothing more than talk to resolve the issues so far, the market still seems uneasy of the weeks ahead. All that said, current trading on LME seems to be more positive than last week which will be a welcome sign to traders and hopefully give manufacturers more confidence that the market freefall has stopped for the time being.
Please find the following article for your perusal;
Signs Of Chinese Copper Demand Mixed -Citi By Rhiannon Hoyle @ Dow Jones
Consensus expectations were generally that China would “step up to the plate” when copper dropped through $8,000/ton–but, so far, the signs have been mixed, says Citi. It says a week-long holiday there may have played a part in their absence, while tight monetary conditions appear to be restricting Chinese consumers and speculators from buying metal, even at current levels. The bank says Thursday’s Chinese trade data to provide some indication, though, as to whether the market can soon expect a pickup in demand. It expects September copper imports to show a modest rise on August.