Top China ADR Portal

China ADR stock research


Warning: strtotime(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 56

Warning: date(): It is not safe to rely on the system's timezone settings. You are *required* to use the date.timezone setting or the date_default_timezone_set() function. In case you used any of those methods and you are still getting this warning, you most likely misspelled the timezone identifier. We selected the timezone 'UTC' for now, but please set date.timezone to select your timezone. in /home1/chinaves/public_html/libraries/joomla/utilities/date.php on line 198

Copper Trader Extraordinaire

E-mail Print PDF

profit_1 October 11, 2010 (Chinavestor) Most investors and market observes probably view China's relationship with copper as one of consumption. To a degree, that's true as China is the world's largest buyer of the red industrial metal and comments and statistics about China's copper use move that market in a big way. Well, there's more to it than that as China also has shown some trading acumen.

According to a report in the Financial Times, China is sitting on a profit of $1.5 billion from a bold trading strategy in copper based on expectations of an emerging markets-led boom. China's China’s State Reserves Bureau supposedly gobbled up plenty of copper when prices plunged during the financial crisis and is now sitting on a tidy paper profit.

While the SRB doesn't publish its purchases, metals traders estimate that the SRB bought between 250,000 and 300,000 tonnes of copper, equal to nearly 2% of global annual production, in early 2009 at a price of less than $3,500 a tonne, the FT reported. With copper prices soaring last week, observers have estimated China has a profit of somewhere between $1.2 and $1.5 billion on its copper reserves.

Goldman Sachs (NYSE:GS) told the FT that it believes the SRB will start to recognize some of those profits in the near-term. The SRB will not want to cause significant disruption on the copper market, so it be reasonable to expect any sales of copper it conducts to be small and incremental in nature.

 

 



If you like us, spread the word to the fellow investors on your favorite Social Bookmarking websites
Reddit! Del.icio.us! Mixx! Free and Open Source Software News Google! Live! Facebook! StumbleUpon! TwitThis Joomla Free PHP
 

!!! CHINAVESTOR.COM is for SALE !!!

BUY this domain with all its credentials. Chinavestor.com has been added to Google News and Finance since 2008! Huge web traffic upside potential! Website is optimized for Chinese stocks but can easily be tweaked. Contact Seller Here

sale1
G_news
Check out The Benefits of Getting into Google News!