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China loves "Glut"

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    IMO, China must be laughing at the stupidity of these Western suppliers believing China is really slowing down to end the world - oil, copper, iron ore, what next?

    China Orders Oil Refiners to Store More Crude

    China Aiming to Use Period of Low Oil Prices to Boost Nation’s Energy Stockpiles

    An employee walks on an oil tank at a Sinopec refinery in Wuhan, China, in 2012. Photo: Reuters
    By Brian Spegele
    Jan. 28, 2015 5:57 a.m. ET

    BEIJING—China will demand domestic oil refiners stock up on crude oil and report their inventories to the government, in the latest move by Chinese leaders to bolster the nation’s energy stockpiles.

    The new rules by the National Development and Reform Commission, China’s top economic planner, will require oil-processing enterprises to maintain crude-oil inventories of at least 15 days when international crude-oil prices are $130 per barrel and below, and at least 10 days of inventory when prices exceed $130 per barrel.

    The statement, dated Jan. 26 but released publicly Wednesday, said existing operations would be required to fulfill the new storage requirements within a year, except in special circumstances in which companies can’t meet the demands in the period. The NDRC’s statement said affected companies would be required to provide monthly crude-inventory reports and, in some cases, undergo on-site inspections.

    “Oil is an important strategic resource, and its secure and stable supply contains important meaning for economic security and the normal running of the economy and society,” the NDRC’s statement said.

    China is a huge importer of crude oil, and officials have been eager to use the recent period of depressed oil prices to enact new policies and programs to shore up supplies. China’s crude imports climbed 9.5% last year, in part the result of filling of commercial and strategic reserves, according to industry analysts.

    Lin Boqiang, an expert on China energy policy at Xiamen University, said the latest rules are another example of China’s government using low oil prices to enact reforms that would be more difficult to put in place in times of higher prices. The current low price of international oil means the financial impact of filling the newly required reserves would be lighter for companies than during times of higher prices.

    “The government doesn’t want to miss out on the low oil prices,” said Mr. Lin. “If I’m the government, I believe I’m doing you a favor. It’s a good time to store.”

    China's State Reserve Bureau to boost copper purchases in 2015

    BEIJING (Scrap Monster): The Chinese State Reserves Bureau (SRB) said it has rolled out a flexible plan to buy out copper during 2015.

    The stockpiler has announced initial plans to buy nearly 200,000 tons of refined copper from international market during the year. However, the purchases may be doubled if global prices decline further. The copper prices had declined nearly 14% during 2014. The downtrend has continued in 2015 with copper prices hitting 5.5 year lows of $5,408.5 per tonne on Thursday.

    The SRB had purchased more copper than announced earlier in 2014, to take advantage of the falling prices. According to the initial plan, SRB was to purchase 300,000 tons of refined copper cathode during 20141. However, the total orders placed by the agency ranged between 300,000 tons and 700,000 tons, the deliveries of which is expected to extend through Q1 2015. Around 50,000 tons of refined copper were shipped to SRB warehouses during January this year, as per sources. The state agency stated that the fundamental strategy for 2015 remains the same as of 2014.

    SRB intends to raise the copper stocks to 2 million tonnes by end-2015. Although initial plans are to purchase 200,000 tons, the actual purchases for the entire year are likely to be in the range between 500,000 tonnes to 700,000 tonnes. Sources indicate that SRB may ramp up purchases in the event of copper prices falling below $5,000 per tonne.

    Meantime, the National Development and Reform Commission (NDRC), which controls SRB, declined to comment on the purchase plan.
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