The globe's top consumer of copper will reduce consumption this year for the first time in four years, according to the leader of a strategy consultancy interviewed by Bloomberg.
But Chinese use of the reddish metal will climb next year, Simon Hunt Strategic Services said. The Asian nation's use is forecast to grow as much as 5.6 percent to amount to 5.9 million tons, Hunt told the news source after a 14-day September visit to the Asian nation.
"The safety valve of exports has gone, the domestic economy is slowing down, they have a problem of surplus capacity and cash is extraordinarily tight," Hunt told the news source, noting the total amount of reserves of the industrial metal in the country is roughly 3.5 million tons. "There are no signals of a recovery in heavy industry and manufacturing."
At 9 a.m. on Tuesday, copper futures increased 0.42 percent, a 0.0155 cent gain to $3.7335 per pound.
But Reuters reports stimulus programs that the nation has implemented recently are likely to prompt demand for the reddish metal to surge.
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