China’s Copper Demand Misleading Investors

According to the Globe and Mail, investors could be missing signs of robust copper demand from China amidst gloom over the weak global economy, which could potentially “wrong-foot those betting on a further slide in prices.”

The Globe and Mail reported,

Despite China’s weak factory data and a credit crunch, spending on the power grid and other areas has meant copper consumption is fairly buoyant in the world’s biggest metals consuming nation.

China’s apparent copper demand, after adjusting for changes in stocks, surged over 20 per cent in the second quarter, Barclays analyst Gayle Berry said.

Gayle Berry further explains that,

From a Chinese demand perspective, things are quite positive. Going into the third quarter. I think we’re going to get some strong numbers coming through for apparent consumption.

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