Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (9376)	11/1/2007 10:42:56 AM
From: LoneClone	Read Replies (1) \| Respond to of 192642

China 2007 copper surplus seen at 360,000 tonnes mining-journal.com China may have a surplus of 360,000t of refined copper this year, which could weigh on Chinese prices and restrict spot imports of the metal in coming months, an analyst at state-owned research group Antaike said. "The surplus would come from high imports and expanded local output," the analyst told Reuters late on October 30. Antaike predicts that China, the world`s top consumer of copper, will consume 4.25Mt of refined copper this year, up 9.1% from last year, which is at the low end of other Chinese analysts` forecasts at 4.2 to 4.5Mt. China`s production of refined copper is expected to reach 3.4Mt and net imports to hit 1.21Mt this year, which would create a surplus of 360,000t versus a deficit of 260,000t last year. The Antaike analyst said the country had built stocks of 427,000t in the first eight months of this year, with demand reaching 2.77Mt. Some 120,000 t of stocks were being held by end-users, he estimated. About 100,000t were being stored in bonded warehouses and another 100,000t were in spot markets, with the rest in private warehouses. In the first nine months of the year, China`s refined copper imports surged 98.1% to 1,2 Mt because of attractive margins for imports in the first half. Exports dropped 59% to 93,375t, making net inflows at 1.1 Mt. Output of refined copper rose 16.1%to 2.5 Mt in the same months. The country added at least 500,000t of refined copper capacity in the second half of the year. "People are worried about the surplus and wondering what would happen if that would be carried to next year," a manager at one large Chinese trading firm said. He said that surplus might encourage merchants to book fewer term copper imports for 2008. Antaike sees the country`s consumption of refined copper rising 8% from this year to 4.58Mt in 2008. Output may increase 15% to 3.9Mt, putting the country`s net imports at 680,000t next year, which would be 44% lower than this year based on Antaike`s estimates. (Reuters, October 31)