6% of the World's Aluminum Supply Found Sitting in Mexican Desert
38 replies, posted
[t]https://si.wsj.net/public/resources/images/BN-PS819_0907Xc_J_20160907170245.jpg[/t]
[QUOTE]Two years ago, a California aluminum executive commissioned a pilot to fly over the Mexican town of San José Iturbide, at the foot of the Sierra Gorda mountains, and snap aerial photos of a remote desert factory.
He made a startling discovery. Nearly one million metric tons of aluminum sat neatly stacked behind a fortress of barbed-wire fences. The stockpile, worth some $2 billion and representing roughly 6% of the world’s total inventory—enough to churn out 2.2 million Ford F-150s or 77 billion beer cans—quickly became an obsession for the U.S. aluminum industry.
Now it is a new source of tension in U.S.-Chinese trade relations. U.S. executives contend that the mysterious cache was part of a brazen scheme by one of China’s richest men to game the global trade system.[/QUOTE]
Read more at [URL="http://www.wsj.com/articles/chinese-billionaire-linked-to-giant-aluminum-stockpile-in-mexican-desert-1473356054"]The Wall Street Journal[/URL]
Now that's just hoarding.
Imagine having to do a stocktake.
Smart. Build up the largest supply possible while the rest of the world depletes theirs and forge a monopoly on it.
77 billion beer cans.
I wonder how [I]Rum[/I]sfeld feels about beer.
Talk about gaming the system. I wonder what the consequences, if any, would be, or if the stock might be outright confiscated.
What if Aluminum becomes as big as Oil for the developed world
I think the USA will have to bring freedom to Mexico
[QUOTE=LtKyle2;51028831]Smart. Build up the largest supply possible while the rest of the world depletes theirs and forge a monopoly on it.[/QUOTE]
Something like 60% of aluminum is recycled so that doesn't make sense. This is about driving up the price of it than trying to monopolize it.
[QUOTE=Buck.;51028820]Imagine having to do a stocktake.[/QUOTE]
You point at the storage and say; "Yup, it's there"
[QUOTE=LtKyle2;51028831]Smart. Build up the largest supply possible while the rest of the world depletes theirs and forge a monopoly on it.[/QUOTE]
Aluminium is literally the main material where it's cheaper to recycle the current supply (which is in constant circulation), that it is to make from raw stock.
This guy would never be able to buy enough to "deplete" the world economy of aluminium. If he kept buying used aluminium, the prices would eventually go high up enough, that the price of recycled aluminium would be high enough, that we would increase production of new stock, and make new aluminium.
But, he could cause a temporary increase in aluminium prices, and he could sell his stock at the new high. But I'm not sure how quickly the prices would go down again.
[QUOTE=nikomo;51028937]Aluminium is literally the main material where it's cheaper to recycle the current supply (which is in constant circulation), that it is to make from raw stock.
This guy would never be able to buy enough to "deplete" the world economy of aluminium. If he kept buying used aluminium, the prices would eventually go high up enough, that the price of recycled aluminium would be high enough, that we would increase production of new stock, and make new aluminium.
But, he could cause a temporary increase in aluminium prices, and he could sell his stock at the new high. But I'm not sure how quickly the prices would go down again.[/QUOTE]
Still smart. He raises prices so he can sell his stock at a higher cost.
[QUOTE=nikomo;51028937]Aluminium is literally the main material where it's cheaper to recycle the current supply (which is in constant circulation), that it is to make from raw stock.
This guy would never be able to buy enough to "deplete" the world economy of aluminium. If he kept buying used aluminium, the prices would eventually go high up enough, that the price of recycled aluminium would be high enough, that we would increase production of new stock, and make new aluminium.
But, he could cause a temporary increase in aluminium prices, and he could sell his stock at the new high. But I'm not sure how quickly the prices would go down again.[/QUOTE]
We just need to nuke his stock, irradiating it so then all the US's aluminum is worth even more!
[QUOTE=LtKyle2;51028973]Still smart. He raises prices so he can sell his stock at a higher cost.[/QUOTE]
Will it make him more than the inventory cost/opportunity cost of holding onto inventory? I doubt it.
There's a reason people don't generally do this sort of thing. The goal is usually to have the smallest possible inventory while not running out.
Is there an Aluminum Dragon nearby?
With this much stock you could easily manipulate the price of aluminium and make a killing using futures contracts.
[QUOTE=LtKyle2;51028831]Smart. Build up the largest supply possible while the rest of the world depletes theirs and forge a monopoly on it.[/QUOTE]
its not smart, its the textbook play that china does with everything
[QUOTE=LtKyle2;51028831]Smart. Build up the largest supply possible while the rest of the world depletes theirs and forge a monopoly on it.[/QUOTE]
It's literally one of the most common elements on the planet, that'll pretty much never happen.
that's a lot of tin foil hats
fort knox but aluminum
[I]Aluminumfinger[/I] (2019)
The article points to what they think is going on with it.
[quote]Aluminum-industry representative Jeff Henderson says he is convinced that China Zhongwang Holdings Ltd., a Chinese aluminum giant controlled by billionaire Liu Zhongtian, tried to evade U.S. tariffs by routing aluminum through Mexico to disguise its origins, a tactic known as transshipping.[/quote]
So, basically avoiding taxes.
[t]https://si.wsj.net/public/resources/images/P1-BY553_CHINAL_9U_20160908124210.jpg[/t]
So trump wall is going to be built out of aluminum huh?
[QUOTE=find me;51029548]So trump wall is going to be built out of aluminum huh?[/QUOTE]
Nope. Vietnam is apparently though.
[quote]As for the giant pile of aluminum, it isn’t so big anymore. Last year it was moved to a field beside the factory, covered with a tarp and bales of hay, according to city officials, neighbors and former Aluminicaste employees. Now, plans are afoot to ship the metal stash to a Vietnam site owned by Global Vietnam Aluminum Co., according to people familiar with the matter. A Global Vietnam director, Jacky Cheung, is the new CEO of Aluminicaste. Thousands of tons of aluminum have gotten trucked out of Aluminicaste’s facility destined for Vietnam, according to observers and people familiar with the matter. As of June, more than $400 million worth of aluminum had been shipped from Mexico to Vietnam, according to the Mexican Secretariat of Economy. Mr. Cheung declined to comment.[/quote]
[QUOTE=Ithon;51029499]that's a lot of tin foil hats[/QUOTE]
Tin foil is a real thing and is not the same as aluminium foil. Most metal foil hats are actually aluminum, but people still call them tin for whatever reason
I don't understand how 6% of the Earth's supply something that is used for a lot of everyday shit is only worth about 2 billion dollars.
I actually don't someone please explain.
[QUOTE=Levelog;51029098]We just need to nuke his stock, irradiating it so then all the US's aluminum is worth even more![/QUOTE]
Okay, Goldfinger.
[QUOTE=Code3Response;51029616]Tin foil is a real thing and is not the same as aluminium foil. Most metal foil hats are actually aluminum, but people still call them tin for whatever reason[/QUOTE]
itsa consiracy man :tinfoil:
[QUOTE=shadowboy303;51028876]You point at the storage and say; "Yup, it's there"[/QUOTE]
t. Fort Knox' Inventory Team
[QUOTE=Daniel Smith;51029931]I don't understand how 6% of the Earth's supply something that is used for a lot of everyday shit is only worth about 2 billion dollars.
I actually don't someone please explain.[/QUOTE]
aluminium isnt expensive
