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Copper Is Crashing In China
Shanghai Copper is down 4.6%, hitting fresh cycle lows not seen since March 2009. No clear catalyst is evident for now aside from stronger USDollar, Codelco's cuts, and more chatter of CCFD unwinds. If COMEX Copper holds these losses, it will be down for 10 straight days - the longest on record from what we could tell.
Copper is crashing in China...
To lows not seen since March 2009...
The USDollar is pushing higher, weighing broadly on commodities. Also continued forced liquidations in CCFDsis not helping as hope for a low evaporates. However, it appears the Codelco cuts are the most prescient...
Concerns metals demand is ebbing deepened as Codelco, the biggest copper producer, cut its surcharge for sales to China by 26 percent next year, according to two buyers. The reduction highlighted waning consumption in the Asian country.
Obviously the tragic developments in Paris have caused a capital flight out of metal and into safety. Secondly, collapsing physical premiums for metal being imported into China really underscores how anemic demand is there.”
China is facing an unprecedented drop in refined copper imports as a slowing economy erodes demand, according to one of the country’s largest buyers. Shipments to the country will shrink 10 percent next year, Stephen Huang, chief executive officer of trading house Arc Resources Co., said in an interview.
Charts: Bloomberg
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Madness!
FLASH NEWS!
Tornado levels halliburton plant according to RT.
https://www.rt.com/usa/322369-massive-tornado-texas-halliburton-plant/
Bullish... broken windows and all that... GDP will zoom!
Glencore (glen.l) has been getting hammered the last 7 trading days. Down from $129 to $89 today. Even Gartman can't stop that default tsunami.
Glencore isn't priced in dollars...
Down almost 75% in the past 12 months. Anymore knife catchers?
Keep an eye on Fed Reverse Repos, Glencore and DoucheBank. If the rumours that Glencore is about to get downgraded are correct, things could get very interesting very quickly.
CANT WAIT TILL IT GOES TITS UP!
Glencore trades in London, and the price of shares is quoted in British PENCE!
Keep your powder dry... Hold!... Hold!... HOLD!!!
Wait until you see the whites of their eyes!!!
Suck it Bernanke!
I wonder how many MOAR of those 3x re-hypothecated, empty warehouse[Chinese] copper contracts are still floating around?
I fully expect some MOAR unexplained explosions at chemical depots in Eastern China in the near future.
Tangibles don't lie! Big coiled spring unwinding...
Is this the fate of silver and gold? Dr. Copper appears to be leading the way.
Copper isn't money.
Tin is
For fiat, which isn't money.
WATER! the new commodity.
Most of Australia's silver is produced from the silver-bearing lead mineral, called galena. Some also is produced from copper and gold mining.
Almost all of Australia's silver (lead-zinc and/or copper) mines are highly mechanised, underground operations. Ore is drilled and blasted in large volumes and transferred to underground rock crushers by large loaders and trucks. The crushed ore is then hoisted to the surface in skips or driven directly to the surface by truck via a spiral access tunnel (decline).
At the surface, the ore is subjected to additional crushing and fine grinding. A flotation process is used to separate the silver-bearing galena from the waste rock particles (tailings) to form a concentrate. Development of the flotation process occurred in the early days of mining at Broken Hill. Today, more efficient versions of this technology are used world-wide. Many mines around Australia and overseas use the improved Jameson flotation cell, which also was developed in Australia.
In this process, ground-up ore, water and special chemicals are mixed together and constantly agitated in banks of flotation cells. Air is blown through the mixture in each cell and fine silver bearing galena particles stick to the bubbles, which rise to form froth on the surface of the cell. The tailings sink to the bottom of the cell and are removed. The froth is skimmed off and the resulting silver-lead sulphide concentrate may assay 800 grams to one kilogram of silver per tonne of concentrate.
The concentrate is sintered (partly melted) to combine the fine particles into lumps and to remove some sulphur as sulphur dioxide. It is then smelted in a blast furnace and drossed (removal of trace copper and impurities) to produce crude lead metal that may contain more than two kilograms of silver per tonne of concentrate.
Silver is recovered when crude lead is refined to high purity. Crude lead is re-melted and antimony and other impurities removed. The molten lead is then poured into a large upright container called a 'kettle' where it plunges through a molten zinc metal layer floating on top of molten lead. The kettle is increasingly cooled towards its base so that as the incoming molten lead descends, the contained silver and any minor gold or copper combines with the molten zinc dragged down from the zinc layer and forms crystals of zinc-silver-gold-copper alloy. The crystals float to the surface and re-dissolve in the zinc layer. The zinc layer is periodically skimmed off and the silver-gold-copper alloy called dore is removed by further smelting then cast into plates for electrolytic removal of copper and separation of high purity silver and gold.
The Port Pirie lead smelter and refinery in South Australia is the most important Australian producer of refined silver and is where lead concentrates from the Broken Hill and other mines are processed. Most of the silver output from Mt Isa and Hilton mines is in lead concentrates, which are smelted to lead bullion at Mt Isa. The bullion is exported to the United Kingdom for refining and silver extraction. Lead bullion, containing silver, is also produced at the Cockle Creek smelter (NSW) and it is sent to Port Pirie for refining and extraction of silver.
Silver ingots are also produced at the Olympic Dam mine from residues generated during electrolytic copper refining.
Silver is extracted and refined by gold refineries in Perth, Kalgoorlie and Melbourne from gold dore or bullion sourced from mainly Australian gold mines.
And you get the proceeds of all that work for only $14 an oz!
It's a miracle I tells ya.
Actually, the Silver is scrap. They barter it to companies like Silver Wheaton as loan collateral at their cost of "removing impurities from the CU".
Gold is money manipulated downward so as not to compete with the US dollar. Copper is a commodity used in production responding to lack of consumer demand. Two totally different stories.
Don't worry, Dr. Copper is a barabarous relic.
a penny for your thoughts
Who the fuck needs copper when you have fuckbook and other great stocks.
And so the impending bankruptcy sale of the century continues. It may not have occured to many people yet, but this is just more of the same kind of shit that Wall Street has been pulling for years. At the cycle high, when everybody is leveraged to the hilt and emerging markets have gorged on US dollar debt, pull the plug on the commodities complex. In about a year (were nearly there now) most companies will be absolutely broke and more than willing to sell out for 10 cents on the dollar as long as the executives get taken care of. And of course this time, there are those 5 Trillion Federal Reserve notes at zero % just sitting in the banks waiting to be used. Once things get crazy enough, most countries and companies in the world won't give a damn about the real shenanigans going on, they will just want US dollars, at any price.
The only real problem they have this time, and it's BIG, is that they can't raise interest rates without crashing the entire financial system, or at least imporant parts thereof. Without the cover of 'higher interest rates' to justify the forced liquidations they are naked as jay birds.
China is right. We need a supra-national reserve currency where no country or region can perform these kinds of robberies.
Dark Daze
No country is dumb enough to give up their own currency to a bunch of bureaucrats schooled entirely in book learnin'
Oh yeah, Europe. I dang near fergot.
Boris Alotovkrap, I feel for it is not good for mother-in-law. How it is she must carry more unit production on back to make is profit. Will couch-laden cousin assume responsibility for volumetrics?
Maybe we can go back to building stills for personal consumption.
Convert the penny back to 95% copper. Create the first silver $10 coin!
Have you ever dropped a penny into a glass of soda?
Until fibre optics rule communication channels at feasible costs, copper will be around.
"fibre". I caught it. That is commonwealth language. That is OK though. Soda? I think I know what you are referring to. Basically you are dipping a coin. That is not a good idea unless it is a basket case coin. It is just never a good idea to clean coins. Any serious coin collector is going to know if you cleaned it or not. I have an 1885 Liberty Head nickel and you don't clean that coin. You have never even seen one and you probably never will. If you can go find that coin at your local coin shop then buy it. It is a popular collection and the prices are sky high for certain dates but 1885 is key. The Chinese are even faking that coin now. You can tell the fakes though. Hint: No one fakes coins that have wear. I don't buy coins online either.
I am truly disappointed and saddened, that the libertarian billionaires (Jim Rogers, Marc Faber, etc.) have been talking up the purchase of PM an Commodities on their downhill slide.
If I'd kept taking their advice, I'd be broke by now.
a) you wouldn't be "broke"
b) you would only have lost money had you sold the PMs
c) if you happened to live in certain countries, and purchased the PMs in local currencies, you would be ahead, or well ahead
Meh I deal in scrap non ferrous and it will get worse - commodities exploded in the early 90's and now it's SHTF time
Thanks for the " heads -up".
Well, there is your consumer economy for you.
Copper was stacked for collateral by the Chinese, they said, then when it wasn't really there and they were all caught short they decided it should be a lot cheaper.
Or something. The mind wobbles. (Kelly Bundyism)
http://thenewsdoctors.com/?p=542531
"silver for a whopping $2.85/oz" and the schizo market is
Silver Wheaton Rapes Glencore: Will Pay $900 Million For Silver At 20% Of Spot Price November 16, 2015reacting with silver up this morning. It should "go to the moon" on this news