Buyer Analytics

Less than 2 weeks ago I reported that China was an expert at timing the energy buy. China completed some amazing deals at a time when there was a significant glut of oil.

Now China is timing the copper buy. According to the Financial Times, a secretive Chinese state organization has been stockpiling copper that has triggered an impressive rally of almost 35 per cent in the price of metal this year (…although maybe buying copper is a better investment than U.S. Treasuries).

Traders believe China is rebuilding its strategic stocks because the current price is less than half last year’s record $8,940 a ton and also to support its struggling local copper smelters and avoid job losses.

Many countries have a competitive advantage due to rich natural resources. These resources enable a higher margin than competitors. Maybe China is the first country to demonstrate a competitive advantage in consortium buying and global procurement?