SexyGurl 0 Report post Posted November 21, 2005 China's State Reserve Bureau, thru it's trader Liu Qibing, shorted as much as 200,000 to 600,000 tonnes of Copper Metal on London Metal Exchange. Most of the shorted metal was at $ 3,300 per tonne ... entirely making a naked bet that, the price would fall, leading to windfall profits. On the contrary, the price rose to it's all time high of $4,300 per tonne, as of Nov 19. If price sustains at that level or higher ... till DECEMBER 21, CHINA COULD END UP LOSING $ 300 MILLION OR MORE. Naturally, some sort of panic has set up ... with China's SRB rushing Copper to Shanghai warehouses for auction sale in an attempt to reduce prices. But, speculators don't believe China has sufficient copper to meet it's commitments. China needs to be able to ship over 200,000 tonnes of copper to LME approved warehouses by DECEMBER 21. (or alternatively, buy up the metal at the Current Historically High Prices from international market, to meet it's commitments). The huge amounts involved has led to speculation, that CHINA MIGHT DEFAULT ON IT'S OBLIGATIONS. There is surely, a lot of fun happening in the international copper markets these days. Not far from the excitement of last overs of a cricket match. Just that real money is involved here. Share this post Link to post Share on other sites
linuxguy 0 Report post Posted November 21, 2005 Whats so funny about it? Share this post Link to post Share on other sites
