Shanghai copper inventories rises first time in 5 weeks
(Commodity Online): Coper prices are under pressure due to the uncertain economic outlook and may face further weakness on increasing Shanghai Copper inventories. COMEX copper is trading down by over 8 cents at $3.4645/pound as of 4:59AM CT
Latest data showed that copper inventories at the Shanghai monitored warehouses rose sharply last week, rebounding from its lowest level since July 2009. Stockpiles rose by 15,057 tonnes, the first such in increase in 5 weeks. Total inventories stood at 72,712 tonnes.
After Copper prices crashed in September, increased Chinese buying had resulted in a strong bounce. However, prices are still trading weak given the background of the European sovereign debt crisis.
With declining Chinese PMI, concerns of a Chinese slowdown remain in investor sentiment. As such, a rise in inventories can be interpreted as a lack of general interest from copper buyers in China, thus posing a threat to any upside potential.
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