Copper To Peak Near $4 Per Pound This Fall, As Chinese Demand Remains Steady

The 11.9% growth China’s economy saw in the second quarter represents the fastest pace in 12 years. It also serves as a signal that the country may continue to import large quantities of copper and other raw metals to meet surging demand from the construction and power sectors.

So far in 2007, China has imported more copper that it did all last year, Octagon Capital analyst Hendrik Visagie told clients in a note.

“Demand from China remains strong despite the fact that demand usually slows in the summer because of holidays and maintenance,” he said.

With refined copper imports more than doubling in the first seven months of 2007, as well as a 65.1% year-over-year gain in July, Mr. Visagie is confident that Chinese demand remains intact . He also noted that copper inventories continue to be low as the season for higher demand approaches.

He expects copper prices will peak in the fall, somewhere around last year’s high of US$4 per pound, despite weakness in the U.S. market.

Comments

[gorml94:]

what is price of copper TODAY?

2007 Aug 23 11:15 AM