DEMAND REPORT

Demand report

Demand Report

During the past decade, global demand for copper rose by two percentage figures, but according to a report of Wrought Copper Council (IWCC) in the medium term demand will drop significantly. Soaring copper prices scares industrial end users, who prefer to spend before buying their large reserves. In many branches of the red metal industry and is being replaced by aluminum or other lightweight materials (www.icsg.org). According to the report of the IWCC, organization key industrial manufacturers of copper, international copper demand will decline primarily due to slower economic growth in China. It is expected that demand for China's copper industry fall by 7%, while in 2010 the percentage increase in demand even added two figures. At the moment it is not expected that China, which represents about 40% of global copper demand, return to replenish their reserves in the second half of the year. This is especially difficult to forecast the development of world economy and falling car sales in China. Although China's copper reserves are declining ten weeks, are still above the average of five years (www.reuters.com). As reported by the Shanghai Futures Exchange, in late May were 82 309 stocks tons. This represents a 54% reduction compared to the maximum of 177,365 tons March. While in the past five years the global demand for copper rose an average of 16.4% in 2011 and 2012 must have a significant drop of 8.4%

According to preliminary data published by the International Group for the Study of copper, it is expected that the growth of global copper demand in 2011 exceeded the growth of production and production shortfalls projected for the whole year around 200,000 tons of refined copper.

Deficit of about 250,000 tons as supply growth will continue behind the growth in demand. By 2013, however, expect an ...