Another week and the same issues being reported as influences on LME markets. Concerns over a possible Greek Debt default, concerns that other European countries may be in the same position, and finally concerns that the Chinese economy is slowing which will cause a flow on effect on demand for metals.
Please find attached the following articles for your perusal
Beijing strives to be coal-free (6 March RBS)
Authorities in Beijing said Sunday that the city will replace all coal-fired equipment in its core areas by 2013, as the Chinese capital strives to curb pollution stemming from its dominant energy source. The city will cap its annual coal consumption at 15 million tonnes by 2015, setting a stricter goal compared with the previous one of 20 tonnes for the same time frame, according to Beijing’s development and reform commission, the city’s top economic planner. Beijing also wants areas inside its 5th Ring Road to be coal-free by 2015, said Gao Xinyu, head of the commission’s energy division. Over the past two years, the city has already invested 12 billion yuan ($1.9 billion) in replacing the coal-fired heating systems of 160,000 homes in its downtown areas. The government also offers subsidies to residents who use electricity for winter heating. Vice Mayor Hong Feng had previously said that reducing the amount of coal burned is one of the most important efforts being made to reach the city’s pollution control target, as coal still dominates the city’s energy mix. To achieve the ambitious target, the city will replace four major coal-burning power plants with natural gas power plants, ban coal-fired winter heating and use more clean energy, said Zhao Lei, deputy director of the commission
Copper Falls First Time in Four Sessions as China Growth Slows (Bloomberg) By Joe Richter and Agnieszka Troszkiewicz – Mar 12, 2012
Copper fell for the first time in four sessions as signs of a slowdown in China, the world’s biggest metals consumer, fueled concern that demand will fade. China posted its largest trade deficit since at least 1989 last month as Europe’s fiscal turmoil slowed export demand, figures from the customs bureau showed on March 10. Copper stockpiles in Shanghai are at the highest level since at least 2003. Money managers cut their bets on a rally for the metal by the most in two months in the week ended March 6, U.S. government data show. “Most of today’s decline is on concerns about a slowdown in China’s economy, and what that may mean for continued demand,” Dennis Cajigas, a senior market strategist at Zaner Group in Chicago, said in a telephone interview Philippines.