• 48 mins Syrian Rebel Group Takes Over Oil Field From IS
  • 3 days PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 3 days Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 3 days Syrian Rebels Relinquish Control Of Major Gas Field
  • 3 days Schlumberger Warns Of Moderating Investment In North America
  • 3 days Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 3 days Energy Regulators Look To Guard Grid From Cyberattacks
  • 3 days Mexico Says OPEC Has Not Approached It For Deal Extension
  • 3 days New Video Game Targets Oil Infrastructure
  • 3 days Shell Restarts Bonny Light Exports
  • 3 days Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 3 days Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 4 days British Utility Companies Brace For Major Reforms
  • 4 days Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 4 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 4 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 4 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 4 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 4 days Rosneft Signs $400M Deal With Kurdistan
  • 4 days Kinder Morgan Warns About Trans Mountain Delays
  • 4 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 5 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 5 days Russia, Saudis Team Up To Boost Fracking Tech
  • 5 days Conflicting News Spurs Doubt On Aramco IPO
  • 5 days Exxon Starts Production At New Refinery In Texas
  • 5 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 6 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 6 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 6 days China To Take 5% Of Rosneft’s Output In New Deal
  • 6 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 6 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 6 days VW Fails To Secure Critical Commodity For EVs
  • 6 days Enbridge Pipeline Expansion Finally Approved
  • 6 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 6 days OPEC Oil Deal Compliance Falls To 86%
  • 7 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 7 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 7 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 7 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 7 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
Alt Text

Busting The Lithium Bubble Myth

Lithium demand continues to grow…

Alt Text

World’s Biggest Miner Prepares For The EV Boom

The world’s top mining company…

A Wave of Steel

A Wave of Steel

China is the key to the metals markets today. And there are some important signals about this market registering in the last few weeks.

Last month, I wrote about diverging global shipping indexes. The Baltic Dry Index, which tracks global shipping rates, has been falling the last several weeks. While the China Containerized Freight Index, tracking solely Chinese shipping prices, has been on a tear. The CCFI is up 12% since the beginning of January.

This could indicate an increase in goods being shipped out of China these days. And those goods might be metals. A few weeks ago, odd shipments of aluminum started showing up at ports in northwest Japan. Speculation is these sailed from Shanghai.

If China is indeed starting to re-export its vast stockpiles of metals built over the last year, there are major implications for prices. There is a lot of supply that could "hit the street" in a hurry.

Some more evidence of re-exports emerged last week.

The European Commission reported that Chinese applications for steel imports into Europe were up 50% in January, as compared to December 2009. Chinese exporters applied to send 244,000 mt of steel into Europe.

Overall, China accounted for 16% of total import applications during the month. The first time in over a year that China represented the largest volume of import orders.

These applications don't guarantee shipments will be made. Exporters are under no obligation to actually send the amount of capacity they apply for.

But this is a development to watch. If these exports do materialize, they represent a large wave of steel breaking over world markets. Running contrary to the conventional wisdom that rampant development in China is sucking up any raw materials the nation can get its hands on.

If China isn't using as much steel as we thought, what's happening to stockpiles of copper, coal and iron ore?

By. Dave Forest of Notela Resources




Back to homepage


Leave a comment
  • Anonymous on February 24 2010 said:
    Good story and a great heads up to producers and investors.
  • Anonymous on February 24 2010 said:
    Please keep us posted. Great article.
  • Anonymous on February 25 2010 said:
    What about Gold and Silver?
  • Anonymous on February 25 2010 said:
    Any chance they're shipping overstocks and making gains? We know there are building halts so it does raise questions about new demand. But I'm wondering if they bought low...made some deals in Europe, then ship some tonnage every once in a while without crashing prices. Then build up stocks again at slightly lower prices later?

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News