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Here Comes "QE For Metals" - China's Desperate Commodity Sector Demands A State Bailout
Zero Hedge ^ | 11-25-2015 | Tyler Durden

Posted on 11/25/2015 1:47:32 PM PST by blam

Tyler Durden
11/25/2015

When it comes to commodity metals, the dead cat no longer bounces.

We showed this last night in "No End In Sight For Commodity Carnage As Chinese Fear Fed Hike Blowback", a post which can be summarized with the following chart showing that at least for nickel, copper, zinc, iron ore and aluminum it will be a very unhappy holiday season:

The one-word reason for this condition: China, which as documented extensively in the past, has clammed down on its unprecedented credit creation now that its debt/GDP is well over 300% and as a result conventional industries are dying a fast and violent death. In fact, months ago we, jokingly, suggested that what China should do, now that it has scared sellers and shorters to death, is to launch QE where it matters - the commodity space.

That joke has become a reality according to Reuters, which reports that China's aluminum and nickel producers have asked Beijing to buy up surplus metal, sources said, the first coordinated effort since 2009 to revive prices suffering their worst rout since the global financial crisis.

(snip)

(Excerpt) Read more at zerohedge.com ...


TOPICS: News/Current Events
KEYWORDS: china; commodities; investing; metals
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Copper Is Crashing In China

Dr Copper, The Economy and The Stock Market No Longer in Sync

1 posted on 11/25/2015 1:47:32 PM PST by blam
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To: blam


2 posted on 11/25/2015 1:48:42 PM PST by blam (Jeff Sessions For President)
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To: blam

300 percent?!?!! Japan’s is 200. Ours is only 100.

We’re no. 1.

We’re no. 1.


3 posted on 11/25/2015 1:50:32 PM PST by dp0622 (..)
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To: dp0622

That’s like winning the $1.98 Beauty Contest......................


4 posted on 11/25/2015 1:52:58 PM PST by Red Badger (READ MY LIPS: NO MORE BUSHES!...............)
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To: blam

They bought lots while it was cheaper....... a real asset you can hold

5 posted on 11/25/2015 1:54:34 PM PST by Thibodeaux (this time really is different)
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To: Red Badger

I placed.


6 posted on 11/25/2015 2:03:46 PM PST by dp0622 (..)
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To: dp0622

That’s even worse!...............;^)


7 posted on 11/25/2015 2:06:05 PM PST by Red Badger (READ MY LIPS: NO MORE BUSHES!...............)
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To: Red Badger

lol. you should have seen third :)


8 posted on 11/25/2015 2:07:26 PM PST by dp0622 (..)
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To: Thibodeaux

what is that? rusted copper on the right?


9 posted on 11/25/2015 2:07:43 PM PST by dp0622 (..)
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To: dp0622

No thanks! I just ate!.............


10 posted on 11/25/2015 2:08:29 PM PST by Red Badger (READ MY LIPS: NO MORE BUSHES!...............)
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To: Red Badger

lol


11 posted on 11/25/2015 2:09:42 PM PST by dp0622 (..)
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To: dp0622

Those are all copper ingots.

We exported lots of copper anodes a few years back during what predicted was a bubble of sorts.


12 posted on 11/25/2015 2:10:12 PM PST by Thibodeaux (this time really is different)
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To: Thibodeaux

I’m tired of looking up words to understand what goes on here lol.

What’s an ingot?


13 posted on 11/25/2015 2:12:21 PM PST by dp0622 (..)
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To: blam

the us should buy back the copper and start up domestic manufacturing.

[alternatively, i could get off of my opium pipe...]

:-)


14 posted on 11/25/2015 2:15:38 PM PST by SteveH
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To: dp0622

In terms of copper I’m not sure but it is in general a block of copper from the mill that will be converted into a useful product.

The Ingots I saw so many of were actually anodes that were produced by some electrolysys process


15 posted on 11/25/2015 2:18:55 PM PST by Thibodeaux (this time really is different)
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To: Thibodeaux
"They bought lots while they thought it was cheaper....... a real asset you can hold "
16 posted on 11/25/2015 2:31:12 PM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: blam

The causes of China’s absurd commodities stockpile are not episodic but systemic. It will take a long time to unwind and, more than that, will require painful and costly reforms. Moreover, China’s demographic imbalance, political stagnation, popular discontent, the end of its export boom, wasted infrastructure, and constrained geography present major challenges that may provoke an existential crisis for the current regime.


17 posted on 11/25/2015 2:33:43 PM PST by Rockingham
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To: blam

I remember five years ago China had bought on the world markets and stockpiled so much copper for its building boom. So much that it stored copper ingots outside the warehouses. It stockpiled at high prices and now all that copper is worth half of what they paid for it.

Commodity deflation and looming negative interest rates is where we are now. I saw a headline about negative rates in Switzerland of all places


18 posted on 11/25/2015 2:35:47 PM PST by dennisw (The first principle is to find out who you are then you can achieve anything -- Buddhist monk)
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To: Zhang Fei

What's In Your Safe?

19 posted on 11/25/2015 3:21:10 PM PST by smoothsailing
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To: smoothsailing

mmmm, brass, lead, a little copper jacketing...


20 posted on 11/25/2015 3:23:20 PM PST by AbnSarge
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