| Its the season for Chinese traders to replenish downstream copper stocks, but while some restocking is expected ahead of summer, price spikes are not, says UBS. According to the bank, the main reason for this is high warehouse stocks that have subdued the price traders are willing to pay for local metal. As a result, it says, writing in a new note titled, ShortKut: Will China Restock? Currently, copper traders in China seem comfortable with the abundance of metal.
"Inventory managers don’t want to run out of stock, but they also don’t want to be caught holding high-cost metal for long periods. Prudent managers of copper inventory are aware of SHFE and LME Asia warehouse stocks, which are at record highs and trending up," the bank writes. ..............................................Full Article: Source
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