According to Chinese industry experts, the refined copper surplus in the country is expected to further widen in 2014 on the back of low demand from collateralized borrowing sector and construction industry.
According to experts, August is traditionally considered as a month of weak consumption demand. The advent of buying season in October is not expected to give significant boost to refined copper consumption in the country, which ultimately would lead to higher surplus during 2014. The experts note that though the infrastructure sector is projected to witness stable growth, the demand from private sector construction sector is feared to slow down.
In the half-yearly copper commodities report published by the state-owned Antaike, the copper surplus forecast was raised to 1.18 million mt, up from the earlier forecast of 730,000 mt.
Meanwhile, the country’s refined copper production is expected to increase by 7% in 2014 year-on-year to 6.83 million mt. The consumption of copper too is forecast to increase by 6.7% from the previous year to touch 8.75 million mt in 2014.