Hot Metal

With the copper price four-fold inflated,
Commodity analysts debated
Whether Chinese demand,
From the stockpile on hand,
Really could or just couldn't be sated.  

Copper prices, which have quadrupled after a two-year rally, are now drawing some skepticism.  Although Chinese industrial demand has driven the rally, recent signs indicate that a slight revaluation is in order. According to the Wall Street Journal, evidence has surfaced that up to a million tons of copper may be sitting in bonded warehouses around the country, implying a weaker consumption than was heretofore assumed. Copper bulls counter that these stockpiles could be consumed in less than one month; such is the voracious appetite of Chinese industry.