Death of commodity prices part 5 This is part 5 in series DEATH OF COMMODITY PRICES
parts 1-4 links here
https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32315680&l=0&r=0&s=etg&t=list
Profits of China steelers down 98.2 % in 2012
Profits of China alu cos down 92 % in 2012
Profits of whole China nonferrous metal industry down 34 percent
And is gonna be worse because demand for steel and Cu may be hurt
after China's cabinet on March 1 introduced measures to tame home prices,
including a 20 percent tax on individuals selling properties, "
On top of that a second gov punch in speculators face is to roll out
nationwide property tax after successfull pilot in couple of cities
Will those 2 needles pop the RE bubble ?
1 . Death of coal , steel and all other major metal prices is already there
We don't need to waste our breath on them
IE Alu oversupply / overcapacity is there practically for ever
Pricing scams run by who else - the wampire squids - GS,JPM,MS
who own the alu warehouses ( hoarding to keep Alu price high hit them back )
nothwithstanding
https://crmassociates.wordpress.com/2012/06/15/a-quandry-for-the-lmes-new-owner-are-its-aluminum-warehouses-too-big-to-fail-or-too-big-to-succeed/
LME AS INDEPENDENT PRICE DISCOVERY EXCHANGE BECAME A JOKE - DEAD TOO.
Key members of the copper industry have already officially informed the LME IN 2012
that if the aluminum situation is replicated in copper it will be a catastrophe for the market
WELL, FORWARD TO 2013 THE CATASTROPHE / TOTAL CU MANIPULATION SCAM IS THERE
Zhong Min, vice-general manager at Jinrui Futures Co SAID ;
70 percent of all refined copper ( DEMAND ) is for financing needs.( not real use )
I HOPE HE IS NOT TALKING ALL =10 MT CHINA DEMAND
THAT WOULD MEAN A GLOBAL CATASTROPHE = 7MT Cu of NOT REAL DEMAND ?
Taking instead just 70% of refined Cu importds we are talking 2 mt Cu laying in warehouses as collateral
( 8 times the LME stockpiles and 13 times OT pit prod.)
2 times more than the 1mt in BONDED = traceable warehouses.
identified in 1 h 2012 SEE PREVIOUS POST = scam is growing .
2.The news about latest ( but not last ) nail in the coffin
of the second most resilent commodity after Cu ... the iron ore ( IO )
is just reaching the last to know .. the wide investors audience
RIO is SOOOOOOO SCREWED... as every other miner... for years to come
Wang said, "the price of iron ore is expected to decline,
and the trend will continue until 2015 due to an oversupply problem in the global market
China imported 8.38 percent more of IO in 2012 but at 21.52 percent lower price
A significant rise in iron ore capacity coupled with moderate steel output growth
will see a shift in pricing power for the raw material from the hands of mining companies
to Chinese steelmakers in 2013, analysts at Goldman Sachs said Thursday.
"In 2013, we forecast China's steel production to rise 5% to 745 million mt
and global iron ore supply to grow 9.5%, sending the global iron ore market
into a meaningful surplus for the first time since 2003,"
analysts led by Julian Zhu said in a note.
THE RISE IN ORE DEMAND IS less than 4% BECAUSE OF use of SCRAP
The hit for western IO miners will be still bigger because
about 40% , or 180 million mt/year, of new China iron ore run-of-mine capacity
under construction is forecast to come onstream over 2013-2015,
MEANS CHINA IMPORTS OF IO WILL SHRINK IN EACH OF NEXT 3 Y
3 THE LAST MAN (HARDLY ) STANDING ON THE VERGE OF an open GRAVE OF ALL OTHER METALS IN IS Cu.
NEXT POSTS WILL SOHW THAT CU IS ALREADY LIKE A FISH ON DRY LAND
JUMPING IN CONVULSIONS UP AND DOWN , but in few months
it will be obvious the fish died .
Next post WILL BE ABOUT
THE ( fatal for investors )FALLACY OF CHINA CU DEMAND PROJECTIONS
BASED ON COMPARISONS OF CU USAGE PER CAPITA in western countries.
STAY ALSO TUNED FOR SPECIAL FEATURE
" HOW YOU CAN BECOME A MULTIBILLIONAIRE
WTIHIN JUST 1 MONTH BY TAKING MULTIPLE LOANS
AGAINST SAME PILE OF NONEXISTENT STEEL OR CU.
SUPPOSEDLY STORED IN SOME WAREHOUSE.
.