Next year's demand for copper might be outdone by global supplies of the reddish metal for a second consecutive year, according to Pan Pacific Copper Co. in Japan.
Bloomberg reports increases in mining output and reduced demand from China, the globe's top consumer of the industrial metal, are pushing inventories toward their highest level in five years. Inventories are projected to push past demand by 643,000 metric tons in 2014, representing the largest amount since 2009. This year's figure amounts to 143,000, according to senior executive officer Yoshihiro Nishiyama with the marketing department of the firm based in Tokyo.
"The slowdown in China's consumption growth is the key factor for the global surplus next year," the senior executive officer told the news source on Wednesday, forecasting consumption to drop by 2.5 percent next year.
At 9:24 a.m. on Thursday, copper futures rose 1.88 percent, a 0.0585-cent climb to $3.177 per pound.
Reuters reports gains on Thursday follow a strong performance by the base metal on Wednesday, when its market performance surged more than 2 percent amid strong data released by the U.S.
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