China's demand is booming The global copper market is in short supply for three consecutive years

Although China's demand is slowing, the global copper market will continue to face supply shortages in 2012.

Pan Pacific Copper, the largest copper smelter in Japan, said yesterday that the global copper market may fall into a supply shortage for the third consecutive year because Chinese demand is still not shaken.

Panpu Pacific, head of marketing of Pan Pacific Copper Company, said that in 2012, global refined copper production increased by 6.7% compared to 2011 to 20.56 million tons, while consumer goods increased by 4.8% to 20.607 million tons.

On the same day, Wei Jianghong, chairman of Tongling Nonferrous Metals Corporation of China, the second largest copper producer in China, stated that China’s copper demand this year may increase by 6%, the lowest growth rate since 2008.

Wei Jianghong made the above statement during the meeting. In addition, he believes that the average copper price in the global market is unlikely to fall below the level of US$8,500 per ton.

On Monday, the chairman of Jiangxi Copper predicted that China’s copper demand this year would be 7%. In addition, the Shanghai Stock Exchange's copper inventories released last Friday hit a record high since August 2002, causing the market to worry that Chinese copper demand has weakened more than expected. He said that the fundamentals of China's copper market are still good, Support the copper price.

Cinda ** pointed out that China’s copper demand accounts for more than 40% of global total demand, and its import dependency is as high as 70%. Therefore, changes in China’s demand will have a significant impact on copper prices. On the issue of **, Premier Wen Jiabao proposed that the 2012 GDP growth target is 7.5%, which is the first time in 8 years that it is below 8%, and copper demand closely related to the economy will be restrained. Traditionally, February-May is the peak season for copper demand, but after the Chinese New Year this year, the downstream shipments are not positive. In the short term, the rise in copper prices was inhibited by the decrease in demand from China. However, in the medium to long term, China is still the largest copper demand country.

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