CHINESE COPPER DEMAND GROWTH MAY BE SLUGGISH IN 2012
DATE: 24/04/2012
The growth in Chinese copper demand is due to dip in 2012 as the government seeks to cool a booming property sector and erosion of bonded stockpiles is unlikely before mid year.
China International Capital Corporation said that consumption growth of copper in China which accounts for 40% of global demand is expected to slow to 4.8%-4.9% from 6.0% in 2011. Construction is the biggest copper consumer in China accounting for a fifth of demand but the government is not ready to lift the brakes on a sizzling housing market that had threatened to become a bubble.
It also expects that government will loosen the policy on the property sector for a year. In addition, the government's aim to boost consumer demand will change the composition of economic growth, which has already resulted in less usage of copper per unit of growth.
POWERED BY: COMMODITY INSIGHTS
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