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Copper consumption in China is expected to drop 8.5% to 5.6M metric tons this year, contracting...

Copper consumption in China is expected to drop 8.5% to 5.6M metric tons this year, contracting for the first time since 2008 before rebounding in 2013, Simon Hunt says: "The safety valve of exports has gone, the domestic economy is slowing down, they have a problem of surplus capacity and cash is extraordinarily tight... There are no signals of a recovery in heavy industry and manufacturing."
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Comments (2)
  • losbronces
    , contributor
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    Given the explanation for the drop; why is a rebound in demand expected in 2013?
    9 Oct 2012, 03:29 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Copper futures are stiffly higher than a few months ago, yet nothing has changed w.r.t. this projection (projection was known a few months ago, driving futures lower to the 3.3 range). The market has started to price in the demand adjustment + QE^(worldwide) since. Is this a floor or resistance? As Alcoa CEO Kleinfeld pointed out, sentiment is a strong factor in driving prices (reality, and not a good one if looking for more certainty and stability based on fundamentals).
    9 Oct 2012, 04:57 PM Reply Like
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