There is a very nice saying-Never underestimate the Stupidity of Politicians.
If they do see that demand for Copper has fallen off a cliff(and if the Chinese State is the largest holder of Copper),then what you say can very well come to fruition.
Would it be the best use of Copper? I am not so sure....
After all,It isn't like China is about to run out Copper anytime soon..
Farmers and various other small-time speculators all across China have stock piled Tons and Tons of copper in the expectation that they will get much higher prices three-six months from now.
Its sure as hell going to be fun watching how things work out when prices start sliding as QE2 comes to a halt in May.
The Panic could well turn into a runaway dumping of thousands of Tons of Copper on the market,turning China into a ....Wait for it.....
Its a well known fact that the reason Copper(alongwith all Commodities) are rising today is because of a Falling US Dollar[If you compare Copper prices in terms of Gold (Sound/real money)prices have actually fallen over the last year or so].
The reason that the US dollar is declining is because of lack of support from Big Players(like China,Japan) and the QE policy by the US Federal Reserve.
So all the Chinese have to do (to bring down Copper prices),is turn around and buy more and more US Dollars and US Treasuries.And Voila!!
The US dollar strengthens causing speculative interests to run away from the Commodity Complex and back into the US Dollar(following the Big money)...As a result the entire Commodity complex drops like a stone!!!
And China can buy all the Commodities they want at much lower prices (in US Dollar terms)....
Hi anandvy, I believe the buyout figures were purposely generous for Equinox, as to avoid a competitive bid process, so I don’t see other buyers at this point.
I agree with you that Australian government may not be able to block this particular deal because most of the mines are situated outside Australia. But am just wondering what would be the reaction of US to this deal ? Will it be interested to place its own bid on equnix ?
In principle as long as we are on friendly terms with China there's no reason why they shouldn't be able to corner the market on a few commodities. The balance of trade would still have to be maintained. As many of the consumers for electronics raw materials are in China itself, overcharging for the materials wouldn't make sense. Since there is currently a tariff-free playing field, companies outside of China don't seem to be in very great danger of being squeezed out.
Hi Ms. Daisy, I am not say that there won’t be an impact, but what I am saying is that the Australian government may not be able to block this particular deal as it has other deals.Because of the fact that the majority of Equinox’s mining assets are outside Australia.And if they decide to change their laws based on this deal, it may cause some diplomatic issues.We’ll see how this plays out and see if the deal get rejected or approved.
I beg to differ on the impact of this sale on Australia if it goes through. The fact that the government of China is owner of this company means that the control of the operations and production of Equinox will be transfered to Minmetal. This definitely takes away any involvement or control by the Australian government once the bid goes through. There will be limits on what the regulations can control. More importantly, Australia will only become a conduit for the raw materials supply.
There is a slow but definite monopoly being built by the Chinese government for High tech raw materials. Australia's Foreign Investment Review Board should in my opinion deny this merger and other countries need to pay attention to China's long term strategy regarding raw materials or we will all be left as 100% consumers of China's products.
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Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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