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PrintChina's copper consumption is expected to top 5.8 million mt/year in 2010, up from a projected 5.2 million in 2009 and 4.9 million in 2008, following heavy investment in the power sector by the government, a Jinrui Futures Co. official said Tuesday.
"The Chinese government is to spend Yuan 1.5 trillion [$189 billion] on power networks and basic infrastructure construction [before end-2010], the key copper consuming industries, which we think can stimulate copper demand in China," a Jinrui official said. Jinrui is a subsidiary of copper giant Jiangxi Copper.
Analysts said the government's plans of completing the ultra high voltage power network by 2015 would have positive impact on domestic copper consumption by 2010.
"Apart from growing demand for copper by the power industry, we are also optimistic about future demand by the domestic automobile industry, given the recent rise in car sales in China," the Jinrui source said.
The power sector accounts for 40-50% of China's copper consumption, according to state-run nonferrous metals research company Beijing Antaike.
It predicted the sector would consume 2.6 million mt copper in 2010, up from a projected 2.35 million mt in 2009 and 2.2 million mt in 2008.
Jinrui predicts China's refined copper imports in 2009 will exceed the 1.456 million mt imported in 2008.
"Total refined copper imports by China during the first four months of the year have already greatly exceeded half the total import volume last year, so the import figure for 2009 will surely be higher, even if volumes decrease in the next few months in the usual low summer buying season," the Jinrui source said.
High imports over January-April was due mainly to arbitrage opportunities as well as State Reserve Bureau's copper purchases earlier this year, which trimmed domestic supply.
China imported 1.066 million mt refined copper during the first four months of 2009, up 106% from the same period in 2008, customs figures showed. –Platts
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