NEW YORK ( Commodity news world ): Chinese copper demand is expected to fall in the coming months on growing indications of weak domestic demand. China is the largest copper consumer in the world. Accounting for 40% of global copper production.
Reuters reported that inventories at warehouses monitored by the Shanghai Futures Exchange has climbed to 221,487 tonnes, the highest since August 2002- almost 10 years! Chinese importers of refined copper are also being reported to have delayed some February and March shipment and also are believed to have diverted some cargoes to South Korea on the back of weak domestic demand.
The Chinese central bank is currently engaging in monetary easing policies, something which is expected to continue for 2012. As such, copper was seen as bullish by investors. But the continuing disappointment in manufacturing data is proving bearish for the metal.
Benchmark LME copper prices are trading at $8500/tonne while COMEX copper is trading around $3.80/lb
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