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Re: China Update - copperKevin,
Thanks again for bringing use these vveru valuable reports,
In a China Update full of good news for commodity investors, this bit seems especially worth underscoring for those of us who follow Quadra, Nord Resources, etc. (italics added):
"Copper – Strategic Reserve Bureau (SRB) Buying
■ China has started buying copper from domestic bonded warehouses and overseas markets, trade sources familiar with the situation told Reuters overnight. ■ “The buying is being done very quietly and not in one big go. It is from multi-channel suppliers such as domestic bonded warehouses and imports,” the source, who asked not to be identified due to the sensitive topic, told Reuters. “They are doing it drop by drop to avoid sharp price fluctuations,” the source said. ■ Copper inventories in a major SRB warehouse in Shanghai increased by about 10,000 tonnes last week, when the whole country was celebrating the Lunar New Year and financial markets were closed, two sources said. ■ The “drop by drop” move was partly due to limited inventories available from Chinese domestic copper smelters, the sources said, in line with a comment by an executive at Jiangxi Copper in January. Back in January, Jiangxi Copper said that domestic inventory is so low that “if we sell to the SRB, we cannot fully fulfill our contractual obligations with clients.” ■ We also heard rumours that the SRB has bought 300,000 tonnes of copper from a Chilean producer. The delivery schedule is 25,000 tonnes in each of the next 12 months. ■ As we wrote last year, we expect the SRB eventually to buy 700,000 tonnes of copper in two years. We also expect China’s copper imports to remain at record levels again in January." |
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Msg # | Subject | Author | Recs | Date Posted |
59278 | Re: China Update - copper | urhmi | 2 | 2/6/2009 8:11:32 AM |