VIDEO: Are you paying attention to China’s metal funds?

On March 7, the copper market suffered one of the biggest price drops for years, losing some 4% in a matter of hours.

{BrightcoveVideo}

On March 7, the copper market suffered one of the biggest price drops for years, losing some 4% in a matter of hours.

This fall was precipitated by large metals hedge funds in China, who recognised that copper prices were out of line with equities.

The funds have been described by some market observers as the largest directional players on the London Metal Exchange.

Metal Bulletin’s editor Alex Harrison takes a look at the funds: what they trade, how much they’re worth and what gives them the edge over their competitors.

Alex Harrison
aharrison@metalbulletin.com
Twitter: @alexharrison_mb

What to read next
Roughly 40,000 tonnes per month of copper cathode that once flowed smoothly into the United Arab Emirates (UAE) through Jebel Ali had few options to reroute after the Strait of Hormuz officially closed on Monday March 2, with the only alternative entry points — Khor Fakkan and Fujairah — already straining under the weight of diverted cargo, market sources told Fastmarkets.
Navigating market volatility with data-driven strategies for resilient mining operations
The publication of several of Fastmarkets' copper concentrates indices was delayed on Friday February 27 because of a technical error. Fastmarkets' pricing database has been updated.
Discover how fear, deglobalization and AI are transforming the copper market. Insights from the Fast Forward podcast's interview with David Lilley of Drakewood Capital.
Fastmarkets has corrected its MB-BX-0016 Bauxite, cif China, price assessment, which was published incorrectly on Friday February 20.
Fastmarkets invited feedback from the industry on the pricing methodology for its non-ferrous materials and industrial minerals prices, via an open consultation process between January 6 and February 6. This consultation was done as part of our published annual methodology review process.