Reuters reported that global copper prices could see an important downward correction as high metal inventories continue to climb.
Mr Santiago Gonzalez mining minister of Chile said that we are worried that stock levels are climbing higher. We are at 700,000 tonnes at the moment, while prices remain. This means that at any minute we could see a violent change and prices could fall.
Mr Gonzalez said that Chile is closely monitoring the disparity between prices and stocks, which he believes is the most out of step in the last 20 years.
Copper prices climbed more than 3% due to fund buying and a surge in Chinese import data that fuel optimism on continued strong demand from one of the world's top buyers of the red metal.
Benchmark copper for 3 month delivery MCU3 on the London Metal Exchange traded at USD 7,695 per tonne from USD 7,465 at the close on Friday and compared with a session high at USD 7,705.
