VKML Buzzing!>>>>> China Intensifies Purchases of Copper
VIKING MINERALS INC (OTCBB: VKML) (www.vikingmineralsinc.com). Company comments on Financial Times article August 31, 2011.
Chinese companies and investors are stepping up their purchases of industrial commodities such as copper, in a show of confidence in the global economy that stands in contrast to the turmoil in western markets.
The wave of buying is providing support for metals and minerals prices after commodities prices fell this month at worries about a double-dip. Senior executives at trading houses, mining companies and banks said Chinese consumers had used the recent drop in prices to rebuild stocks.
"China is significantly less pessimistic relative to people in the western world," said Raymond Key, head of metals trading at Deutsche Bank. "On dips they are restocking, especially in copper." An executive at an important Chinese trading house added: "There is no doubt some traders have been buying (copper) recently."
The surge in copper buying benefits the largest exporting nations, including top producers Chile and Peru, and miners such as Freeport McMoRan Copper & Gold, BHP Billiton and Xstrata, and trading houses such as Glencore and Trafigura.
Viking Minerals President Charles Irizarry commented "Investors in resource companies such as Viking must keep a global perspective when looking at North American exploration companies. It is not Europe and the United States that we look at when making decisions on what to mine and where. It is countries like China (which consumes nearly 40% of the world's production of copper) and where China's economy and demand are heading that is important. Global production of copper simply is not going to keep pace with demand, this leads to higher copper prices and larger producers looking for new deposits. Despite economic turmoil in the western world proving up a large Copper deposit today will pay huge dividends tomorrow"
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