NEW YORK (TheStreet) -- China may start 2010 where it left off this past summer: stockpiling raw materials.
At least that's what
newspaper Wednesday. China's Ministry of Commerce, according to these traders, recently indicated that the country should increase its imports of raw materials at an "appropriate" time.
Market players evidently interpreted this as a signal that China would begin a new round of commodities buying at the start of 2010.
Targets were even pegged for China's stockpiling plans, the
report said: 1 million tons of aluminum, 400,000 tons of copper, 400,000 tons of zinc, 20,000 tons of nickel, and enough oil to supply the country for 90 days.
In the middle of 2009, China went on a frenzied commodities shopping spree, buying up raw materials as prices fell to their lowest levels in years amid the global economic crisis.
Should China restart its stockpiling plans, it would boost the prospects of mining companies and the dry-bulk shipping concerns that haul those materials. Indeed, the brisk pace of Chinese importation this summer drove shipping rates higher than any other point during an otherwise bleak 2009.
The New York-listed issues of diversified mining giants
all gained ground. American depositary receipts of BHP were up 0.9% to $75.90; Rio advanced 1.7% to $215.46; and Vale rose 1.7% to $29.02.
Shares of copper giant
gained 1.2% to $81.88, and aluminum bellwether
stock price increased 1.8% to $16.29.
Dry-bulk shipping names were moderately lower during the half-day Christmas Eve session. Shares of
were down 1% to $6.05,
fell 1.4% to $14.59; and
Genco Shipping & Trading
declined 0.9% to $22.20.
-- Written by Scott Eden in New York
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