Jul 09, 2012 (Dow Jones) BEIJING--Anticipated strong June housing sales data, which the government will disclose Friday, are likely to underpin robust growth in China's copper consumption in the second half of this year, Goldman Sachs said in a note Monday.
Private-sector property sales estimates already point to 50% on-year growth in eastern Chinese provinces, which would support the bank's forecast of 5% copper consumption growth this year, Goldman said.
China's eastern provinces account for half of total Chinese property sales.
"The apparent sales recovery likely reflects pent-up demand for property, lower interest and mortgage rates, and discounts on mortgage rates for first-time buyers," Goldman said in a note.
"We continue to expect construction-related copper offtake to grow robustly in the second half of 2012," Goldman analyst Max Layton wrote.