Quote from a recent publication -
"China’s copper import hit a record high of 329,300 tons in February, up 41.5 percent from the 232,700 tons of January.
The import volume in January and February totaled 562,100 tons, up 20.6 percent from a year earlier.
Analysts attributed the rising import to Chinese government’s purchase for national reserve from foreign market, and hedging business between Shanghai Futures Exchange (SHFE) and London Metals Exchange (LME).
Accordingly, China State Reserve Bureau has signed to purchase 300,000 tons of copper from foreign markets for national reserve, which will mostly arrive in China in the first half of this year.
In February, about 200,000 tons of copper was imported for national reserve.
Chinese government has stocked 600,000 tons of copper for national reserve by far."
The Chinese Government is stockpiling copper as a hedge against the falling dollar, with falling world economic production. This has lead to a decrease in available copper in the world market. It does not take a crystal ball to feel that the brass track price increases announced by the main manufacturers, in 2008, will be repeated again next year.