SG:Copper producers keep China faith as rout belies demand
Bloomberg reported that copper, the worst performing major metal this year, is underpinned by prospects of a recovery in Chinese demand that will help counter increased supply.
Mr Diego Hernandez CEO of Antofagasta Plc said that, the biggest metal consuming nation will meet its 7.5% economic growth target. Aurubis AG, the second biggest refined copper producer, attributes a slowdown in purchases since November as a little bit of a pause as Chinese buyers reduce stockpiles.
Copper prices fell 9.3% this year, reaching the lowest level since 2010 last month, on concern that a slowdown in China and a release of metal held as finance collateral is coinciding with a flood of new supply.
Mr Hernandez said that Santiago based Antofagasta’s clients are continuing to buy at the same pace, while investors are exiting bets that copper used in financing deals will enter the market.
Mr Stefan Boel member of Aurubis’ board said that “People may think they’re slowing down, but that’s not necessarily the case. I am not nervous. China is going to grow again. The price has more to gain than to lose but nothing spectacular.”
