Chinese copper demand drops, stocks rise

Demand for Chinese copper dropped 22% in October, to the lowest in over a year, reports ft.com. However, stocks of the metal have risen to a record high.

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Those two facts signal a warning for the Chinese copper market, and many experts are cautious about the short term outlook of the red metal.

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There are some factors that may mitigate this weakness, adds ft.com. The drop in imports last month was mostly due to a port strike and public holiday in Chile. With that resolved, Chilean producers will likely boost their shipments.

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Also, Chinese copper smelters lifted their production sharply, up 10.7% from last year, according to the National Bureau of Statistics. Read more.