ListerWA, at the time I knew that China hadn't slowed, I was...

ListerWA, at the time I knew that China hadn't slowed, I was travelling around the country and I could see no slowing of the Chinese economy. This is of course contrary to what all the analysts were saying, but you only see these analysts in 5 star hotels and restaurants in Beijing and Shanghai, you don't see them walking the streets of Chengdu, Chongqing, Kunming, Yichan, Tunxi etc.
At the time the Chinese were laughing at us, as we were selling our Cu metal at bargain prices. It was only a matter of time before Cu prices went up, so I didn't see it as a risky purchase.

This is happening again to a lesser extent, the shareprices have gone down but the fundamentals haven't changed. I've been loading up more ABY every day.

It is always interesting to read a story in China.

China's copper demand may expand 12%, Wanxiang says
(Agencies)
Updated: 2010-05-25 14:02
Copper demand in China, the world's largest user of the metal used in pipes and wires, may gain as much as 12 percent this year and prices won't fall much further, according to Wanxiang Resources Co's chief analyst.

"Consumption is still strong," driven by continued economic growth, said Sheng Weimin from the unit of Wanxiang Group, the country's largest auto-parts maker. Demand, including refined and scrap copper, may climb to 8.96 million metric tons, said Sheng, who's studied metals markets for more than 15 years.


Investor concern Europe's debt crisis may derail the global recovery and China's measures to prevent its economy from overheating have hurt commodity prices, pushing London copper 8.6 percent lower this month. Stocks, metals and oil fell today, with Asian shares set for the lowest close since July 30.

"Prices have tumbled not because of fundamentals but because of economic uncertainties that exist outside China," Sheng said yesterday by phone from Shanghai. "As it stands now, copper prices don't have much further to fall."

Three-month futures on the London Metal Exchange declined 1.7 percent to $6,794 a ton at 12:07 pm in Singapore. The metal, which is used in cars and appliances, dropped 0.8 percent to 54,810 yuan ($8,027) a ton on the Shanghai Futures Exchange, taking the decline this year to 9.1 percent.

"Demand from downstream consumers is very good, their order books are full, but they are buying hand-to-mouth because no one wants to hold too much inventory in these uncertain times," Sheng said, referring to car parts and appliance makers.

China's imports of refined copper were 1.06 million tons in the first four months of this year, according to customs data.