Following the LME Copper dip below USD5000 last week, the red metal is now sitting just above that mark. Markets and trading have been quiet however, with the worlds’ biggest consumer, China, currently enjoying a country wide holiday to celebrate China’s National Day. On October 1, 1949, the People’s Republic of China was inaugurated. An official victory celebration and ceremony was held in Tian’anmen Square. Mao Zedong raised the first Communist national flag of China in person amid 300,000 soldiers and other people who were gathered at the square.
The Australian dollar currently trades at 0.7086, however with the Reserve Bank meeting later today, markets will watch with anticipation as speculation of an interest rate fall are in the wings.
Please find the following for your perusal;
**** DJ Chinese Manufacturers’ Copper Demand Draws Down Stockpiles ****
Copper stockpiles at China’s bonded warehouses are being drawn down steadily, raising the question: Where is the copper going? “We believe the biggest answer is increased fabricator purchases, including on the back of increased electrical grid tenders,” says a Citi report, referring to demand from manufacturers. Over 350,000 tons of copper have flowed out in the past three months, adds the report. Higher consumption by the world’s largest consumer is a positive signal for the red metal, which hit a six-year price low on Aug. 25.