The period characterized by a reduction in metal inventories in China is over, at least now there is an increase in sales of rolled metal and an increase in demand for all rolled copper. Since July in China at copper sheet price has risen by almost 8 percent. This is also due to the prospect of stabilizing economic growth in China in the coming months. The most traded copper contracts since December have been on the Shanghai Futures Exchange.
On the London Metal Exchange, copper prices are hovering near a 9-week high, boosted by strong growth data from China, although the US Federal Reserve may soon resort to stimulus measures to contain the price level. Copper climbed to $ 7,245 a tonne on the London Metal Exchange and is likely to rise further. This is due to the fact that production in China in July developed at the fastest pace since the beginning of this year.
The increase in China's imports is the most important driver for the recovery in copper prices. In July, imports rose 28 percent in one month. The fact is that China accounts for 37 percent of the world's copper demand. However, per capita copper use in China is still low, as copper consumption is less than 50 percent than in the United States. Right now, the largest demand for copper in China is reported to come from the energy sector, which accounts for about 40 percent of total consumption.
