News Article
Copper Demand Likely To Hit Prices
Huge production levels in China's construction, power and automobile sectors have driven copper metal consumption in the country to the highest level of any country in the world, according to a new report by natural resources experts GBI Research. The latest study shows that from the 1.9 Million Metric tons (MMt) consumed in 2000, copper demand has multiplied to 6.6 MMt in 2011. This represents a staggering 85% of the total Asia-Pacific consumption total, and 57% of the global amount.
The Asian nation is one of the top five producers of mined copper in the world, with output of 1.4 MMt in 2011. This is expected to rise to 1.9 MMt by 2020, climbing at a Compound Annual Growth Rate (CAGR) of 3.4%.
This volume, however, far from meets the country's copper need, and so large-scale imports from countries such as Chile and Australia are necessary to match the demands of China's developing economy "“ this has been a contributing factor in China's RMB12 billion ($1.9 billion) investment to expand its power infrastructure in rural areas.
Correspondingly, Chinese copper metal consumption is expected to jump from 7 MMt in 2012 to 10 MMt by the end of the decade, growing at a CAGR of 4.5%.
According to the United States Geological Survey (USGS), Asia-Pacific's copper reserves stood at 162.8 MMt in 2010, representing around 28% of total global reserves. Of this regional total, China held an 18% share, while the Australia led Asia-Pacific with a 49% portion.
