November 14, 2005


Copper hits record as China denies exposure (Chris Flood, November 14 2005, Financial Times)

Copper prices pushed to a fresh all-time high on Monday amid market rumours that a Chinese government copper trader built a significant short-position on the London Metal Exchange and subsequently went missing.

The three-month copper price rose to $4,132 per tonne from Friday’s close of $4,100 before retreating to $4,079.5.

Liu Qibing, who worked for China’s State Reserve Bureau (SRB) is rumoured to have built up short positions amounting to between 100,00 and 200,000 tonnes, a potentially huge exposure, according to reports by Dow Jones Newswires.

There are a billion suckers born every....

Posted by Orrin Judd at November 14, 2005 8:25 AM

You can't cheat an honest man (or woman).

Posted by: erp at November 14, 2005 9:10 AM

If you run Liu Qibing through Babelfish, will it return Bunker Hunt?

Posted by: Rick T. at November 14, 2005 9:44 AM

'Government copper trader'??

Posted by: Mike Earl at November 14, 2005 10:21 AM

So . . . an agent of a totalitarian police state makes a heavy bet, with the police state's money, that copper prices will go down. Copper prices go up, causing the totalitarian police state to lose money. At this point, one of two things happens:

-- The secret police drag the poor bugger off in the middle of the night and he's never to be seen again.

-- The guy gets out of town before the secret police can get to him and does his best to vanish without a trace. (See here.)

Anyone surprised by this?

Posted by: Mike Morley at November 14, 2005 10:33 AM

The three-month copper price rose to $4,132 per tonne from Fridays close of $4,100 before retreating to $4,079.5.

Is the "rumored" "missing" "trader" the only guy who can trade the account? Um.....shorts who covered made money here folks. Even if they had to average up some, $4,079 is less than both $4,100 or $4,132.

(I think even OJ can do that math)

Posted by: John Resnick at November 14, 2005 12:44 PM


If you believe these guys, copper has doubled since 2003. I doubt his shorts were week-to-week.

Posted by: Mike Earl at November 14, 2005 1:50 PM

Mike: Of course not all of them were. I just thought it a bit odd the rumor triggers a short squeeze that falters - potentially netting smart, nimble shorts some $$. Who knows what really happened.

Posted by: John Resnick at November 14, 2005 2:58 PM