I found another new article out this morning confirming the uptick in Chinese purchase of copper and other metals, and the consequent drop in above ground supply and the recent rise in price. He also points out that China's manufacturing sector is growing and that China is planning significant infrastructure work for their country that will consume metals.

I paste below a quote from the article, and the link thereto below that:

"China’s official manufacturing index jumped sharply in February, gaining for the third month in a row, suggesting the country could be on the brink of a recovery despite a slump in global demand. The official purchasing managers’ index (PMI), rose to 49.0 from 45.3 in January, and far above the record low of 38.8 reached in November. Every sub-index in the official PMI rose in February. Output and new orders climbed to 51.2 and 50.4, respectively, returning to mild growth. . . .

But China’s State Reserves Bureau bought 100,000 tons of zinc at 11,500 yuan /ton last week, the second purchase in less than two months, and has contracted to buy 240,000-tons of copper, and 300,000-tons of aluminum. Copper inventories at LME warehouses have declined 23,000-tons over the past two weeks, the first noticeable drop in nine-months. About 55,000-tonnes of copper are earmarked for delivery to warehouses in Shanghai, where copper supplies are at the lowest in a decade."

http://www.kitco.com/ind/dorsch/mar0...