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China Copper,Aluminum Use May Triple Over Next 15 Years -Barcap

iconApr 29, 2010 11:35
Source:SMM

BEIJING, Apr 28, 2010 (Dow Jones Commodities News via Comtex) -- Chinese consumption of aluminum and copper could triple over the next 10-15 years if China follows a similar process of development as its Asian neighbors, spurring an "unprecedented" level of additional supply response, Barclays Capital said in a research note late Wednesday.

"The metals-intensive early phase of economic growth continues through to GDP PPP $15,000, which suggests that China, at just over $5,000, still has a long way to go," economist Gayle Berry said, referring to the gross domestic product purchasing power parity per capita, a measure that reflects the purchasing power of different countries.

Government investment spending is giving way to consumerism as the country grows richer, which bodes well for the intensity of use for copper and aluminum, which rises most rapidly during such a phase of development, Berry said.

China's usage of copper is also lower than its peers at the same stage of development, suggesting much more price upside, the note said.

"Prices may have to rise high enough to constrain demand," Barclays said. 
 
 

aluminum Al
consumption
copper Cu
demand

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