Wednesday, March 4, 2009

The fate of Copper

Found a informative & interesting perspective on the copper market from Ship Chartering this afternoon.

Ship Chartering is a site which "aims to inform readers on the Shipping Industry with emphasis on Ship Chartering, Sale and Purchase of Vessels, Bunker Cost for Ship Owners, Ship Brokers, Charterers and Traders as well as the Baltic Index."

Some significant and furious activity is happening in China where Copper is concerned. This is not recent and there has been a significant rise in Chinese demand for refined Copper imports since the last three consecutive months.

Imports reached a record 211,527 tonnes in December 2008, up 89 percent more than December 2007 and 49 percent higher than November 2008. Only last month we talked of slowing down of the Chinese economy and these rising imports of Copper don’t match the growth pattern of China.

One of the reasons for China’s sudden rise in demand could be the result of its government’s serious and wide scale efforts to ease bank lending, and hence stimulate domestic business.

The requirement could be for some large scale planned project that the Chinese government has chalked and ready but awaiting funds which the government’s stimulus package will provide for.

Click here to access the full entry from Ship Chartering