div align=”justify”We’re familiar with the concept of strategic oil reserves but a strategic reserve of rubbish? Actually, the huge pile of unwanted recyclable materials like glass and cardboard now piling up in warehouses around the world will only get bigger, but the Chinese government is aggressively stimulating the global scrap metal industry with a focused bailout plan of its own. A few weeks ago, China’s State Reserve Bureau announced that, in an effort to stimulate the collapsing non-ferrous metals sector (ie aluminium, copper, lead, zinc and tin) it would emstrongfund the acquisition of a large non-ferrous metal stockpile/strong/em. Soon after, Yunnan Province (home to a large non-ferrous industry) announced its own strategic reserve to include 300,000 tons of aluminum, 100,000 tons of tin, 300,000 tons of zinc, 150,000 tons of lead, and 150,000 tons of copper. In the wake of the economic crisis, and the collapse in China’s export manufacturing sector, the non-ferrous metals industry nearly collapsed due to a lack of demand and excess inventories purchased at record prices. As a result, raw material suppliers, including US scrap metal dealers and Australian miners, found that, in the space of a few months, their biggest customer simply stopped buying. Now that’s all changing fast. strongemspan style=”font-family:trebuchet ms;”This article continues at /span/em/stronga href=”http://www.deadcatsbouncing.com/”strongemspan style=”font-family:trebuchet ms;color:#cc0000;”www.deadcatsbouncing.com/span/em/strong/astrongemspan style=”font-family:trebuchet ms;” /span/em/strong/divdiv align=”justify”strongemspan style=”font-family:Trebuchet MS;”/span/em/strong/divdiv class=”feedflare”
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Last 5 posts by Sean Maher

• Who was Smuggling $134bn in US Bonds into Switzerland? - June 12th, 2009
• Geithner Toxic Asset Plan Collapses: Will US Banks Follow? - June 10th, 2009
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• China Hedges Against US Inflation... - May 28th, 2009