[中国金属]刘其兵在LME建立空头部位的价位大约在3,300美元

　　China Copper Trader Shorted At $3,300/Ton - China Daily

　　[中国金属]刘其兵在LME建立空头部位的价位大约在3,300美元

　　 BEIJING (Dow Jones)--Missing Chinese copper trader Liu Qibing, at the heart of speculation over a large, loss-making trade in copper futures on the Lon don Metal Exchange, took short positions in July and August equal to about 130,000 metric tons of copper at $3,300 a ton, the official China Daily reported Thursday.

　　 The report didn't cite any sources for the information, and links Liu's trade with the State Reserve Bureau's auctions of the base metal from reserves this month. The SRB is the government agency that manages China's copper reserves.

　　 "The auctions were triggered by the misjudgment of trader Liu Qibing with the National Control Centre, who struck futures deals for the SRB at his office in Shanghai," the report said without attribution.

　　 "But prices kept rising, exposing the government to losses of hundreds of millions of dollars when the contracts fall due on Dec. 21," the report said.

　　 It said the government was "thus forced to auction more copper to bring down the price and reduce losses stemming from Liu's short position."

　　 A short position is selling a futures contract one doesn't own, with the intention of buying the contract - or cover the short - at a lower price at a later date. The trade becomes unprofitable if prices go up when it is time to cover the short.

　　

　　 DJ China Copper Trader Shorted At $3,300/MT -China Daily -2-

　　

　　 Last week, the English-language daily, considered the key state media targeted at the foreign community, gave the first confirmation of the short position at the LME, which had been rumored by traders at international copper markets.

　　 Citing an unnamed SRB official, the China Daily report last week distanced the Chinese government from blame for the position and losses, saying that "initial investigation found that Liu alone should be blamed for the loss."

　　 The speculation on whether China needs to buy massive amounts of the metal to make physical delivery to LME warehouses overseas has underpinned skyrocketing copper prices, which are around record levels.

　　 The local-language, state-owned Shanghai Securities News Thursday reported the SRB plans to auction a total 60,000 tons of copper reserves over the next few weeks in three tranches, including the 20,000-ton tranche slated for sale on Nov. 30 that was announced Wednesday.

　　 The Shanghai Securities News report didn't attribute the information to any source.

　　 Next week's auction will be the third in as many weeks. Since Nov. 16, the SRB has put up 20,000 tons of copper reserves for auction every Wednesday, but it hasn't managed to sell all the copper put up for sale.

　　 The bureau said tightness in domestic copper supplies prompted its sales, which are aimed at meeting domestic demand. The bureau falls under the ministerial-level National Development and Reform Commission, China's top economic planning agency.