SHANGHAI, Apr. 16 (SMM) – China’s copper demand grew only 0.7% in the first quarter, and the full-year growth may ease to merely 4%, report came from a recent copper industry meeting said, which coincides with SMM opinion.
Tightening credits and sluggish demand from end users are the culprits of this weak demand, SMM reckons.
The National Bureau of Statistics said China’s GDP growth was merely 7.0% in Q1 2015, and markets are also downbeat about production data for end copper consumers – primarily automobile, home appliance, and electric power sectors – due out in late April. These figures will bode poorly for China’s copper consumption.
SMM survey indicates the rise in utilization rate at copper smelters may have been limited after the Chinese New Year holiday as Jiangxi Copper and Yunnan Copper conducted maintenance. However, supply in China will increase quickly in the rest of the year as large smelters put forward high production targets for 2015.
The slower demand growth and ample supply will remain a drag on copper prices, SMM foresees.
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