As one of the world’s most traded metals copper has surged to a seven year high this week of US$7,674.5 per tonne on the London Metal Exchange, leaving speculators debating if it was Dr Copper’s signal of a healing economy, latent demand, or Chinese stockpiling in an attempt to control the market.
China has been accused of “panic buying” copper in recent months, while at the same time it has pared back its US dollar exposure and launched its yuan-denominated copper futures contract to international traders.
The new copper futures contract began trading last month through the Shanghai Futures Exchange’s subsidiary Shanghai International Energy Exchange and is the city’s first copper contract open to foreigners.
With copper one of the world’s most traded…
