Some investors are positioning for a further fall in the price of copper, despite the metal coming off its lows in the wake an investigation into fraudulent trading activity linked to metal held at China's Qingdao port. The Chinese government and state-owned Citic Resources are investigating allegations that warehouse receipts from a single metal shipment were pledged up to eight times as collateral for loans. LME cash copper fell from over US$7,000 per tonne at the start of this month to under US$6,650. Since the warehousing scandal emerged, prices have jumped back to over US$6,700. But according to analysts, many investors are still positioning for entry into the market - some at US$200 below current levels. "Until we know what actually happened, it's difficult to know where the market will go, but there is a lot of positioning for another move down," said a metals analyst at one European house.
展开▼
