Beijing, We Have A Problem: Warehoused Asian Copper Hits Record High
Pardon this brief tangent from the hypnotic, sclerotic, quixotic, Cypriotic situation which will get no resolution today, or tomorrow, and may at best be resolved on Sunday night following yet another coordinated global bailout, (although our money is on a last, last minute resolution some time on Monday when Cyprus is closed but the European markets are widely open), but as it highlights a key follow up to our article from two days ago, "Dr. Copper's Deja Vu" it is worth being aware of a rather particular problem in Asia right now. A rather well-known problem for those who have tracked the warehousing woes of assorted industrial medals in China as an indication of the true state of the Chinese economy: as of right now, the stocks of copper in Asia (as determined by deliverable LME CLS and Shanghai copper) are at an all time high and up 90% from the previous three year average.
Soon enough every warehouse in Asia will be stocked to the brim. What happens to copper prices then when no more copper can be stored, either for functional or collateral purposes, is unclear, but if the Fed, BIS and ECB somehow manage to manipulate that market next, we expect it will go stratospheric.
h/t Sean Corrigan of Diapason
(12 votes)
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Copper fins for bitcoin miners bitchez
What happens? First, the Chinese government takes the warehouses, buries them in concrete and dirt, and resells them to Freeport-McMorON as a mining concession.
Wilbur Ross, Meredith Whitney, Larry Fink, David Pepper, Warren Buffet, Alan Greenspan, Jack Lew have all come out and said that equities are not in a bubble. After all these are such smart people and so rich too.
Maybe they all are right ? What if I miss the rally ? Will I get my dream if do as they say ? Maybe I should just pull the trigger and click the BUY button ?
they mean "not in a bubble" as it relates to how quickly Benny B is printing.. stocks may be trading overly conservatively given the amount of printing yet to be done.
ghost warehouses?
just pre-buying to supply the 2nd and 3rd bathrooms being added on to all those spiffy brand new condos in the ghost cities
btw Larry Motherfucking FINK is long ghost cities and copper
With this much of a copper overhang, what can we say about "Doctor" Copper?
Physician, heal thyself.
> Maybe I should just pull the trigger and click the BUY button ?
Probably far more dangerous than the candy-like History Eraser button - but unless you click it, we'll never know!
give the chinese credit. they're turning electronic 1's and 0's (ben's idea of money) into hard assets. eventually, it will be used. eventually.
I hope they have a few warehouses full of connection grease...
KY?
Someone tell me how to distinguish slowdown/misallocations from war preparation stockpiling. If there is ever a hiccup in the Just-in-Time world trade logistics the Chinese will be sitting pretty. Is this evidence of a long play or of central planning stupidity? Could be either.
Bingo
Copper isn't a bad thing to have warehoused, (although these are extreme levels) but still way better, and more usefull than warehouses full of treasuries...
The Japs (Mitsubishi) have got warehouses full of Tuna.
I hate cancer.
(just want to see if I get junked too)
I'd rather warehouse copper than US dollars any day.
It's got to be central planning stupidity. With so many paper (ass)ets to chase the hoarding of precious metals is so FULL RETARD.
Then lets hope they start a war soon, so the west can get in there and loot the shit clean out of it. yummmm, copper.
Copper is not a monetary metal. Why should we care about its price?
Bad for the world economy, but good for China. I'm sure they'd rather have a metric shit-ton of copper than the equivalent in dollars.
Kurgman: mint a trillion-dollar copper coin!
Copper is not a monetary metal. Why should we care about its price?
If I pay the postage, can you send me all of your pennies? I'll give you the paper equivalent, plus 2 cents per each pre-1981 ones. :D
Copper doesn't only have a 'ton' of commercial and industrial uses, but is great for air mail too. Especially when delivered by Pb carrier pigeons. It makes quite an impression on the recipients, from what I've seen. ;-)
because we want to buy as much ammo as cheaply as possible.
A copper based currency solves a number of problems that exist with gold or silver based currencies, and I've remember reading about China seriously looking into this path...
Just in time for the collapse. Dr. Copper showing the way once again.
Why should we care about it's price? Heh, good one.
It won't collapse until I sell my last share of FXP
Exactly the same thing with CRUDE OIL. Identical repeat of the runup to 2008.
Anybody believing weekly inventory numbers of crude oil storage would be out of mind. That's government data, same as unemployment data, totally manipulated.
Howver Crude Oil impact is a looooooooooooooooooot more felt into the real economy.
In a nutshel this is the equation of the western world economies, particularly USA:
CHEAP OIL = CHEAP FOOD AND CHEAP LIFE.
(Artificially) scarce oil = Misery (right now)
EKM do you just spew standard Troll BS or make it up as you go? Petroleum inventories are DOWN for the year. Price is down YOY, natty gas prices not so much. The Shale Oil and Gas propaganda has brainwashed massive numbers of merkins from reality.....Like viturally all the crap coming out of the Goverment its pure BS. Now that the EIA still comes close to reality my guess is because the Industry would call BS on them if they were not accurate unlike the NAR.
Here is some REALITY for you! Oil and Gas prices
http://markets.ft.com/Research/Markets/Commodities
Check out the TOTALS on the bottom of the page to see the inventory trends you can manipulate the data for more info
http://www.eia.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.htm
Now look at the Massive Production and Inventory of Natty Gas Uh Uh Uh why the heck is it dropping....Price is to freaking LOW! My guess is next week we could go below the 5 year average! We are already -21% BELOW last year.....But But we are loaded with Shale Gas right . LMAO propaganda. In fact if the Salt Dome inventories had not been added in... like they weren't there before we would already be there... Please tune into the facts and not the BS. SUPPLY is becoming tight at these PRICES.... like it or not!
http://ir.eia.gov/ngs/ngs.html
As far as the Chinese stockpiling Copper...no surprise double bonus. Keep pressure on the Market prices and divesify out of U.S. CONfetti. Chinese are mostly excellent traders. And the A-wipes at the FED are a massive tailwind for them. Once again to the detriment of the PRODUCERS in this country trying to maintain an economy!
Sir, inventories are bulging and I think they've got no more place to put it. Same game was played in 2008.
http://www.brecorder.com/markets/energy/america/78965-the-qmissing-barre...
I have a problem with price drop y/y point of view. You see, it's all about the reference point.
My reference point is 2009, crude oil at $35, hence economy rebounded.
Right now crude oil is $40 at least over priced.
You're showing such an absolute lack of understanding about oil prices that we'd have to start in kindergarten to get you up to speed. Try again later.
That's what people said until 2008.
Everybody bought what you're saying, myself included.
That's why I decided to spend countless of hours trying to discover how it actually works and I did.
Fool me once shame on you. Fool me twice, shame on me.
Copper-backed yaun!!!! "winning". Junk away morons. China is still a single-party state-controlled "market". The U.S. is too, they just don't know it yet. Should ens well... < sarc off >
Few people are coming to ZH to simply junk.
No sense of humor. It shows the misery of the totalitarians out there.
The asians love games, in the spirit of the current world "market" anyone else foresee an exciting game of "picking up pennies from the path of a steam roller" coming soon. Hey, as another commentor points out, at least they will be real pennies.
The Chinese play that steamroller game for keeps:
http://www.theglobaldispatch.com/chinese-protester-crushed-under-steamro...
Think they wouldn't hoard any fuckin thing that could be hoarded? Think a construction worker would stop short of running someone over?
Think again!
Brand new spin on the government buying up ammo.
Can't produce ammo if you got no damn metal!!!
Beijing Dr. Copper...
Washington, We Have A Problem: Weyerhaeused American Paper Hits Record High
I have a sandwich bag full of nickels.
I have a sandwich bag full of nugz.
*cough-cough*
The copper thieves hitting every vacant house around here are about to be disappointed on their future trips to the recycling center.
No problem they can hold it and when the war begins the price will return.
Nah, copper is so last century. DU will be the projectile of choice when the war comes. Need to do something with all that nuclear waste.
Not only that, but landlords are replacing copper plumbing with plastic, after a burglary. And in Chicago and Detroit they take out the furnace and water heater, while it's vacant and boarded up. Of course in safer parts of town or country, they install a burglar alarm as cheap insurance. So, fuck you, copper thieves!
Bullish for pennies.
assorted industrial medals in China
Pretty funny freudian fat-finger there.
What if the U.S. started minting $100 copper pennies? Might be an olive branch to Shanghai to keep the Chinese buying enough USTs for Ben to 'manage the exit.' :D
I think Joe Kernen is hanging around junking every post.
I saw Liesman's fat head trying to duck out of here.
Phew...my dyslexia kicked in and I read "I think Joe Kernen is hanging his junk around every post."
(the taste of bile in my mouth is now receding...)