Hints China delays copper buy

Fu Qiang, a researcher at Mike Futures Company in Shanghai, has told AFP he thought State Reserve Bureau had won an extension "to 2006 or 2007" on its obligation to buy some 200,000 tonnes of copper at US$4,478 a tonne. A state trader had taken an illicit short position on the London Metal Exchange in October, obliging Beijing to buy at the December 21 market price. Copper prices were forced up 42% when news of the position reached investors. LME traders said Beijing had likely arranged to roll over the contracts. AFX reported December 22 that China is in talks with the LME to build a large commodities facility at Shanghai amid speculation it cannot meet its purchase obligations.