According to Bloomberg, citing reliable sources, over 50% of the copper traded on the London Metal Exchange (LME) has been purchased for delivery to Chinese buyers in the past three weeks. Moreover, the media company stated that the lion's share of this volume was of Russian origin.
Bloomberg stressed that "more than half of the copper in LME warehouses - much of which was of Russian origin - has been ordered out for delivery in the past three weeks, mostly by traders planning to deliver it to Chinese buyers”.
Analysts attach importance to the stance of foreign buyers on Russian copper. It may have a profound impact on possible introduction of new anti-Russian sanctions affecting copper trade in the LME. In case of further high demand for copper among foreign customers, the LME management is unlikely to introduce tough restrictions, experts are confident.
Notably, Reuters said the volume of Russian copper traded on the London Metal Exchange had increased in mid-October. At the end of September, 14,800 tons of copper remained unsold in LME warehouses in the Netherlands, 24,800 tons in Germany and 22,800 tons in Taiwan. However, analysts assume the current situation may change.
Traders have requested delivery of 70,000 tons of copper from LME warehouses over the past three weeks. Much of that is intended for Chinese consumers. According to experts, the bulk of these products are of Russian origin. Soaring copper prices in China’s domestic market are the reason why the country is focused on copper imports.
