Marcos, "... if they were to think the process through and look around, they might discover that they can buy even cheaper in the ground ..."
Indeed, the Chinese are buying properties in Argentina, Peru and Australia that I know of, and they have practically taken over Congo. I think they also just committed to partnering on a refining project in Brazil.
Their recently well publicized withdrawal from Chile was cited by some as evidence of China's declining demand for raw materials. I think they just found better deals. They look to be heavily into taking full advantage of lower prices for all commodities, and appear almost vindictive toward Australia for what they feel had been price gouging in recent years.
And, FWIW, I read that their largest steel mills increased production in the last couple of months, even while the smaller mills were cutting production. In fact, there is a formal government effort to favor the larger mills at the expense of the many smaller ones. I don't know but I think this may be for environmental reasons.
Also, iron ore shipments from India are up in the last two weeks. Lower shipping cost are at least part of the reason for slightly higher demand.
Late news in this part of the world, unsurprisingly, is about layoffs at copper mines in Globe/Miami and Safford/Morenci.
Artificially low prices and mine closures may combine to improve the strength of the rally that must come at some point.
Now, about aged grass being found in old tombs, well I dunno. Perhaps there is also a psychoactive component in all those mold spores. Any volunteers?
VP in AZ |
