Hello Mark,
Message 17357459
I do not know if I am answering any specific question of yours, but here is what my metal trading English Chinese Jewish nephew has to say about copper (picking one of many metals he deals in (he deals in financial instruments, and his partner deals in physical stuff), but the story is pretty much the same across the periodic table – China is a large and growing user, a net importer of ore, and an opportunistic exporter of processed stuff):
(a) China uses 10% of world copper production, is second largest user in the world (after USA),
(b) China is a net importer of copper,
(c) China sometimes imports more than it can use (in concentrate form) and re-exports some processed stuff using its tax-free regulations and cheap electricity to good advantage, and
(d) China is currently re-stocking its strategic reserve and the order tends to be bunched within a small time window (2-3 months), thus moving prices sometimes by as much as 10-20%
The world of metal trading seems even more shadowy than the world of power plants (my current focus, nearing an end, helping folks to divest off power plants), full of cliques, greed, danger, opportunities, and lone gunslingers. I like it. Death match Unreal Tournament style.
Chugs, Jay |
