• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 1 hour Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 6 hours Shale profitability
  • 10 mins Europe: The Cracks Are Beginning To Show
  • 38 mins Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 11 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 2 hours Hong Kong protesters appeal to Trump for support.
  • 14 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 59 mins LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 18 hours Let's shut down dissent like The Conversation in Australia
  • 21 hours New designs will reduce transport fuels consumption
  • 12 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 18 hours A little something for all you Offshore swabbies
  • 5 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 22 hours Democrats and Gun Views
  • 9 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
Alt Text

This Supermajor Is Leading The Energy Sector

This supermajor has been standing…

Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

How To Play A Recovery In Oil Prices?

A realistic correction in the…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

New Silk Road Could See China Gain Control Of The Copper Markets

A few offhand comments last week may show a massive new plan underway in global copper investment; one that could see major consumer China take the metals world by surprise.

Reuters reports that high-level Chinese officials gave some strong hints of such a move at an industry conference last week in the southwestern city of Nanning, saying that Chinese companies may use a recent geo-strategic initiative as a device to control copper concentrate supply. Related: U.S. Shale Drillers Running Out Of Options, Fast

The development in question is China's new "Silk Road" investment initiative. A policy I've previously discussed in relation to the gold market, but which now looks set to impact base metals as well.

Under the Silk Road plan, China is building stronger economic links with nations along the ancient trade route -- spanning 60 countries from the Stans through to Iran, Turkey and Serbia. And that creates a major opportunity in copper, according to speakers at last week's Nanning conference. Related: Is Russia The King Of Arctic Oil By Default?

China's state metals research firm Antaike kicked off the theme, with senior analyst Yang Changhua telling conference attendees that many Silk Road nations produce substantial amounts of copper ore -- but few possess large-scale copper smelters.

Changhua pointed to this a major opportunity for Chinese metals companies, suggesting that Chinese firms should preferentially buy copper concentrates from these countries for processing at facilities in China. Related: Stop Blaming OPEC For Low Prices

He also noted that Chinese firms should cement their influence in Silk Road copper nations by building smelters in these countries. A sentiment that was later echoed at the conference by the head of copper for China Nonferrous Metals Industry Association, Duan Shaofu -- who said at least one Chinese metals firm is looking at constructing a copper smelter in Kazakhstan in "support of Beijing's strategy."

Those last words suggest a concerted effort is underway to control copper supply in this important producing region; an important note for both buyers and sellers in the copper market.

Here's to exploring the road,

Dave Forest

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play