Network Metals LLC

Yesterday we mentioned the details of the Chinese stimulus plan and how it relates to base metals. It really is only more of the same murky picture out of China, and a good example of why it’s so difficult to read Chinese smelting production. Basically China is looking to rationalize its smelting industry, with emphasis on restricting output from high energy-usage smelters (like those for copper, aluminum, lead and zinc). We will continue to investigate this situation with our Chinese contacts. However it is doubtful that these events will have any immediate effect on the supply/demand picture.