Decline in China property sector hurts copper

Author: Paul Ploumis
22 Jan 2015 Last updated at 10:38:15 GMT
LONDON (Scrap Monster): The decline in the real estate market of the Country, which makes use of almost half of China’s copper, has affected the industrial metal consumption, in 2014, and it is expected to remain in 2015, stated the analyst Ruger Yuan in his report. The report also stated that, the price of the commodity in 12 months might be lower than the bank’s forecast of 6,000 dollars per metric tonne

The value of copper declined about five year low on 14th January, when speculations were around that, the economy of China is declining and the demand for the commodity will diminish, while the decline in the price oil will make it much cheaper for the producers to hike supplies. In the current week, the International Monetary Fund, along with the World Bank cut down the global growth forecast. China has declared that the economy of the country has grown at the slowest pace since 1990. The value of the metal has declined by about 9.9 percent this year after falling by about 14 percent in 2014.

Analysts stated in the report that the property sector is the key to hiking the demand for copper. The demand of copper is expected to get affected seriously.

The growth of property in China for the present year will be steady, based on bank estimates. The value of real estates in the month of December declined in about 65 cities out of the 70 cities, according to Government reports, stated the National Bureau of Statistics.