By Dec, DCY will be rolling...Copper will be in high demand. check out this report from China yesterday:
Copper imports by China, the largest consumer, rose 10 percent in June from the previous month as buying from overseas became profitable and supply tightened after consumers drained local stockpiles.
Inbound shipments were 280,009 metric tons compared with 254,738 tons in May, the General Administration of Customs said on its website today. Imports were 15 percent lower than 328,231 tons a year ago.
Imports climbed for the first time in three months as arbitrage traders sought to profit by purchasing the metal in London and selling in Shanghai. Copper stockpiles have fallen by half since reaching the highest level this year in March amid a seasonal increase in demand.
“Starting from late-May, we’ve seen positive arbitrage for most of the time,” said Wang Mingyi, an analyst at Galaxy Futures Co. “As transportation takes one to two months, arrivals in July should be even higher.”
Copper for delivery in three months on the London Metal Exchange climbed to an almost three-month high of $9,789.75 a ton on July 8. The metal for delivery in September on the Shanghai Futures Exchange, which includes 17 percent value-added tax, closed 1.2 percent higher at 71,870 yuan ($11,118) a ton.
Stockpiles monitored by the Shanghai bourse have fallen to 89,498 tons, 50 percent less than this year’s high of 177,365 tons in March, according to exchange data.
Copper stored at bonded warehouses in Shanghai has dropped to 350,000 tons to 400,000 tons from a record of 600,000 tons at the end of March, according to Shenzhen Rongtuo Trading Co. The warehouses located in Shanghai’s free-trade zones are used to store arrivals that haven’t cleared customs. There is no official data available on warehouse levels.
China also imported 64,491 tons of unwrought aluminum and products in June, compared with 74,880 tons in May and 74,582 tons in June 2010, according to the customs. Exports of unwrought aluminum were 59,166 tons