This is a continuation of my previous post.
Those holding long (buy) position are playing with fire also.
The speculator realize that the conner attempt this time is not as easy as attempt to conner China Aviation Oil. Battle with SBR this time might get themselves burn this time around.
SBR auction off 200,000 tonne of copper since 23November 2005. This is to send a message to the market. They have the ability to supply the volume Liu Qibing sold out which due for settlement on 21 December 2005.
SBR might choose to deliver the goods rather than close the contract. This mean SBR have to deliver 200,000 tonne of copper before 21 December 2005 to London Metal Exchange warehouse at Singapore or Korea. SBR have to top up the deposit so that it wouldn't be force selling or corner by long position.
If the above happen. Speculator conner attempt might fail.
Financial Times in UK reported that copper stores of London Metal Exchange's warehouse in Singapore has increase 4% to2525 tonne.
Although no official announcement from SBR. Market predicted that the increase in volume come from SBR.
However, some people in the industry said SBR try to manipulate market might increase it loss to USD1billion.
Last Friday 3 December 2005. Copper price break USD4400 for the first time at London Metal Exchange. On 6 December 2005. Copper price in New York Future market also break record high.
Let see what happen on 21 December 2005.
The ending is unlikely to be predicted.
Related Link : Bloomberg The Economist The Peking Duck Paul Kedrosky's Infectious Greed The stalwart Angry Chinese Blogger
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