Less copper consumed this year
By Gong Zhengzheng (China Daily)Updated: 2006-12-28 09:20 Copper demand in China, the world's top consumer and importer of the metal since 2002, is forecast to decline this year for the first time this decade due to high copper prices.
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The National Development and Reform Commission (NDRC), China's main economic regulator, said 2006 copper demand will tumble 7 per cent year-on-year to 3.4 million tons.
As a result of weakening demand, the country's copper imports will fall 40 per cent to less than 800,000 tons this year, according to the NDRC.
The government body explained that the demand is restrained considerably by
high domestic copper prices, bolstered by price hikes in the international
market.
 The production line of the Shandong Albetter Copper-Aluminium Industry Co Ltd, in East China's Shandong Province. [China Daily]  |
Domestic copper prices have remained at an average of more than 60,000 yuan (US$7,670) per ton this year, double the amount in 2005. Internationally, copper prices have surged by three-quarters to more than US$6,700 per ton due to massive speculation by funds.
However, analysts said the prices are unlikely to remain at such a high level next year.
Shang Fushan, from the China Non-Ferrous Metal Industry Association, told China Daily: "Copper prices in 2007 will decline slightly due to slowing demand and expanding production in China."
Many copper users in China are shifting partly to other cheap metals, such as
aluminium and alloys, in order to cut costs, Shang said.
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