bingo...
Posted on 04/09/2010 3:37:21 PM PDT by bananaman22
A couple of interesting data points the last few weeks, on commodities oversupply.
Last week CBI China reported that Chinese base metal stockpiles are reaching epic levels.
CBI surveyed commercial warehouses in Shanghai plus three other provinces and found that metals inventories have continued to bulge. All told, 965,000 tonnes of aluminum and zinc are now held in storage across China.
That's phenomenal inventory growth over the last few months. At the end of 2009, stockpiles stood at "just" 626,000 tonnes. We're up over 50% in a single quarter.
And CBI expects inventories to keep rising, noting "We'll have 1 million-tonne inventories in the near future."
This is obviously a concern for anyone investing in these metals. How will this supply eventually be absorbed back into the market? Can it be done with disrupting prices? Full article at: Chinese base metals
(Excerpt) Read more at oilprice.com ...
Dollars will lose value - metal stockpiles can be made into demanded goods in the future. A much better investment for a manufacturing nation. ( America’s dropped out of the industrial manufacturing business, we’ll just trade derivatives).
Looks like they have lots of metal for their war machines.
China buys most of their metal scrap from the US, so it’s good in that way I suppose.
Tanks, destroyers, aircraft, submarines.....
There is no good metal in China.
It’s all pop music.
HUMMMMM weren’t the Japanese doing the same thing prior to WWII?
bingo...
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