Traders reduce 2015 sale Huatong metal contract purchase quantity, because of worry about the credit supply

Reuters Sydney on December 5th news: the sale of copper Chinese global traders to reduce the number of purchase in 2015 from the hands of producers of copper, due to concerns about the Qingdao port financing Piandai events will weigh on demand and excess supply, is expected next year. Affected by the Qingdao harbour, banks have been tightening metal financing credit, cause impact to small manufacturers and trading, and next year is expected to supply the global market surplus. A global trading company in Singapore trader said, "in the past, whether it is to buy 5000 tons or 50000 tons of copper, you can find buyers. But this year is different."
The world's largest copper producer - Codelco finalized Asia Premium benchmark copper Codelco. 2015 years the premium for cargo than LME spot copper premiums for $133 a tonne, lower than the year at $138 per ton. But traders said that in recent months the backwardation since September above $100 to $50 price decline, or even as low as $20, means that the loss also buy copper importer. "No one wants to lose contact with Codelco, but will reduce the number of purchase," said a trader in singapore. Codelco declined to comment. Five dealers said that the decline in Singapore operation multinational traders and copper production enterprises signed contracts shipments shipments estimated annual contracts may drop by 30-40%. But the total import volume will not fall so much, because traders will buy more stock or quarterly contracts, copper. Traders said a large multinational traders to copper contract price vigorously to $120, and even other businesses out of the lower price, that they think next year will be a lower premium.
"Many people noticed that Chinese buyers in this year's contract negotiations attitude is very uncertain," trading company in Xi'an MEIKO copper department general manager Luo Shengzhang said. "This is because in 2015 the demand too much uncertainty, many downstream of our buyers can not be determined, whether can get as much next year the bank credit." International Study Group (ICSG) is expected, there will be about 390000 tons of excess supply of copper next year, but historically the supply is always lower than expected. If the supply is not expected, or credit conditions have improved it, so generally rely on off the shelf trends may lead to soaring copper premium.