China went on a commodity buying binge during the last eight months, snapping up materials that had tumbled from record high levels during the first quarter of 2008 to bargain prices by the beginning of this year. The Chinese purchases were so significant that they were primarily responsible for the recent rebound in global prices for a number of commodities, say industry sources.
“There’s been a massive increase in imports of aluminum, copper and, to a lesser extent, zinc and iron ore, not for consumption but held by the [metals] trade in storage, sitting at the trader’s warehouses and at the ports,” says Stuart Burns, managing director for Europe and Asia at Aptium Global, Chicago.