China refined copper demand to rise 4%-5% in 2015

Author: Paul Ploumis
22 May 2015 Last updated at 05:41:56 GMT
BEIJING (Scrap Monster): The refined copper consumption by China is expected to rise by 4%-5% over the previous year in 2015, according to Shen Haihua, senior portfolio manager of HFZ Capital Management. He was speaking on the sidelines of the LME Week Asia Seminar in Hong Kong.

According to statistics released by Beijing Antaike, the Chinese refined copper consumption had totaled 8.72 million mt during the entire year 2014. This was nearly 6.3% higher when compared with the consumption during the previous year. The Chinese refined copper consumption during 2013 had totaled 8.20 million mt. The overall copper consumption will remain robust this year on the back of strong demand in China, Shen Haihua noted. However, the demand is likely to witness slowdown starting from the fourth quarter this year and first quarter next year.

The copper prices have failed to stage a strong rebound even though the inventory levels of copper in China are down. HFZ Capital Management believes that copper prices will remain subdued on account of macroeconomic factors. Meantime, weak US dollar and hopes of China stimulus boosted copper prices from the three-week low hit during the previous session. The prices were also supported by inventory levels.

HFZ Capital Management is a joint venture between Red Kite Management and Maike Metals International, one of China’s largest metals and mining groups. The company manages the Hong Feng Zheng Fund that expresses relative value views through positioning in spot futures, calendar spreads and listed mining equities.