From Reuters via Mineweb:
High stocks and reduced Chinese buying lead to price knock for copper.
Copper fell on Thursday, with another jump in inventories underscoring weak demand as OECD consumption languishes and analysts see high prices deterring Chinese buying.
Copper for three-months delivery MCU3 on the London Metal Exchange traded at $6,552 a tonne in official rings from $6,570 on Wednesday. Other base metals and oil CLc1 also fell.
Copper inventories, which have been rising since mid-July, climbed 5,775 tonnes to 379,825 tonnes and are at their highest level since early May.
"The Chinese have topped up and are quite heavy on stocks now," said David Thurtell, an analyst at Citi. "They've got plenty of reserves so there's no need for them to do lots of buying at these levels."
He said that this year copper would not retest 2009 highs above $6,700, but it could rise towards $7,000 in 2010.
The copper price has more than doubled this year, supported by hefty buying by China, the world's top consumer of the metal used in power and construction, and dollar weakness....MORE