China's 2012 copper products output to rise

Hong Kong, 29 June 2012

Platts: China's 2012 domestic output of copper products is expected to grow 10-15% from 2011, less than the 18% growth seen last year, Beijing Antaike, the state-run metals research company said in Beijing Thursday. It attributed the slower output this year to weak demand expected from key downstream consuming sectors.

In 2011, China produced 10.28 million mt copper products, up 18% from 2010, data from China Nonferrous Metals Fabrication Industrial Association showed. This year over January-May, China produced 4.33 million mt of copper products up 10% year on year, CNFA figures showed.

Zhejiang, Jiangsu, Anhui and Jiangxi provinces accounted for the bulk of the January-May output.

"Demand growth in the electronic, machinery, as well as transport sectors this year may be limited, but we see the power sector to be the principal demand driver," He Xiaohui, a commodity analyst with Antaike said.

"Judging from the Association's recent figures, we see this year China's copper products output to be 10-15% higher than last year's levels," he said.

As of end-2011, China's domestic copper products processing capacity was 12 million mt/year, figures from CNFA showed.

In May this year, CNFA had said China could face a copper products supply surplus by 2015 as over 3 million mt/year of new capacity was set to come online during the 2011-15 period. CNFA, however, did not elaborate on details on the ongoing projects.

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