| Inventories of many base metals have soared to historically high levels in the aftermath of the Great Recession. In spite of a depressed demand backdrop (slow recovery and China doubts) the impact on spot prices has been limited.
If history were a guide, the level of inventories would have driven spot prices below the cost of production. This would have led to a downward adjustment of production, eventually bringing the market into equilibrium...............................................Full Article: Source
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