Copper is not liquid
Dow Jones Newswires is reporting, (May 11, 2006 03:05 ET/07:05 GMT) that LME 3-month copper has broken $8,300/ton on "the flow of fund money".
"Conditions remain extremely thin, however, leaving prices volatile and prone to 'wild fluctuation,' one dealer noted. "The gains we are seeing are astonishing, but it's very difficult time for trade players because market liquidity is drying up and prices are so volatile,' he said.
"A key problem facing many of the bank players in particular that are active in metals is that their funds clients are still requesting quotes for large positions. But with many LME brokers reluctant to make markets, banks are being left with that role.
"'There is talk of large losses at many of the banks who've been badly burnt,' one trader said."
Copper
"Conditions remain extremely thin, however, leaving prices volatile and prone to 'wild fluctuation,' one dealer noted. "The gains we are seeing are astonishing, but it's very difficult time for trade players because market liquidity is drying up and prices are so volatile,' he said.
"A key problem facing many of the bank players in particular that are active in metals is that their funds clients are still requesting quotes for large positions. But with many LME brokers reluctant to make markets, banks are being left with that role.
"'There is talk of large losses at many of the banks who've been badly burnt,' one trader said."
Copper
posted by Guambat Stew at Thursday, May 11, 2006
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