UPDATE 1-Anglo doesn’t see China investors selling copper stocks

* No imminent draw down on Chinese-held stocks seen

* Some see risk in stocks held as investment collateral

(Updates with quote, background)

SANTIAGO, April 5 (Reuters) – Copper stocks held by Chinese
investors are unlikely to flood the market any time soon, the
head of Anglo American’s (AAL.L: Quote, Profile, Research) copper business, John
MacKenzie, said at the CRU copper conference on Tuesday.

Some market players are concerned that rising stocks held
by investors as collateral in China, not immediately visible to
the market, could significantly reduce an expected copper
deficit that has catapulted prices to records this year.

“I would be really surprised if those stocks flood the
market,” MacKenzie said.

Non-mining companies in China have been buying copper to
use as collateral for loans, analysts say.

It is unclear how much stockpiled copper is actually being
used as an investment tool in China, and some analysts see it
as a significant risk. [ID:nN04285785]

MacKenzie also said high copper prices could prompt
industries to look to alternatives to copper, but said the
metal’s conductive and anti-bacterial properties make it hard
to substitute.
(Reporting by Alonso Soto. Editing by Simon Gardner and Lisa

UPDATE 1-Anglo doesn’t see China investors selling copper stocks