It is important for us here not only for the sake of buying pressure and increasing demand for metals: it is even more important why they are doing it now. China is not guessing about US Dollar value: its value depends on China ability and wiliness to Buy or even continue to Hold Treasuries.
"...On Monday, it emerged that China was poised to buy up thousands of tonnes of rubber and sugar to create a bigger state buffer of supplies for the future, adding to efforts to enlarge stocks of everything from oil to corn to industrial metals.
At the same time, however, it's letting small coal mines go to the wall, seizing a chance to make good on years of rhetoric, as well as allowing smaller, less efficient metal producers go under.
"As the fundamental balance moves toward a liberal supply of coal, it is an opportune moment to close small mines and speed up restructuring and consolidation of coal resources," Zhang Guobao, head of the National Energy Administration, said this week.
The government's State Reserve Bureau has begun building up government reserves of metal, buying around 300,000 tonnes of aluminum and 30 tonnes of indium and starting negotiations to add to its zinc and copper inventories..."
At the same time, however, it's letting small coal mines go to the wall, seizing a chance to make good on years of rhetoric, as well as allowing smaller, less efficient metal producers go under.
"As the fundamental balance moves toward a liberal supply of coal, it is an opportune moment to close small mines and speed up restructuring and consolidation of coal resources," Zhang Guobao, head of the National Energy Administration, said this week.
The government's State Reserve Bureau has begun building up government reserves of metal, buying around 300,000 tonnes of aluminum and 30 tonnes of indium and starting negotiations to add to its zinc and copper inventories..."
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