What is China’s State Reserves Bureau up to? That has been the talk of the copper market since the Financial Times reported this week that China’s stockpiling agency had been making inquiries about buying the red metal, having earlier this year purchased nickel on the international market for the first time since the financial crisis,writes Jack Farchy.

At first glance, the situation now may be an inopportune time to buy copper. Yes, prices have fallen about a third from the record high of $10,190 a tonne in 2011, but they are still double the lows of 2008 and more than double the levels of pre-2004.

Price need not be the sole reason for the SRB’s forays into the market. But it is notable that the bureau started making inquiries about copper, according to sources, just as it dropped below $7,000 about a month ago.