Sunday, May 20, 2012
Chinese metal inventories soar as global economy slows
Workers are storing iron ore in granaries because regular storage is full. Copper ore is stored in car parks for the same reason.
In Quingdao port hundreds of piles of iron ore as tall as three story buildings occupy an area designated as "grains storage". In Shanghai car parks are being used for copper storage.
Copper stored in Shanghai is now twice the usual 300,000 tons average. Iron ore stocks are also a third more than average. With Europe in crisis demand is slowing and China itself is growing more slowly.
A manager at a copper tube manufacturer said:"New orders have slowed quite substantially from a year ago...With demand so weak, we've scaled back operations, shut one production line and reduced the number of shifts." For much more see this article.