Reply #15: China Sells 20,000 Tons Copper Following Loss Report

[UpInArms]

http://www.bloomberg.com/apps/news?pid=10000080&sid=a_y...

Nov. 16 (Bloomberg) -- China's government sold 20,000 tons of copper today after a report that one of its metals traders made losing bets on the commodity.

The country's stockpiling agency this month announced plans to sell copper to damp rising domestic prices. The agency may also be selling metal to push down the international market to help it cover the trader's wrong-way bets, say analysts including Barclays Capital's Ingrid Sternby in London. ``It's keen to keep the price down,'' she said.

Copper, used in power cables and plumbing, has risen 31 percent this year and reached a record in London for the third consecutive day yesterday. China is the largest copper consumer.

Liu Qibing, the deputy head of imports and exports at the Chinese government agency, was placed on leave in October, people who have worked with him said. Liu, who bought and sold metals for China's State Reserve Bureau in Beijing, built positions that require overseas delivery of between 100,000 and 200,000 tons of copper by Dec. 21, the Wall Street Journal said Nov. 14.

``The inference must be that they face huge losses'' as a result of Liu's trades, said Angus MacMillan, an analyst in London at Bache Financial.

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