Less copper consumed this year
By Gong Zhengzheng (China Daily)Updated: 2006-12-28 09:20
For example, current domestic aluminium prices range from 21,000 yuan (US$2,690) to 22,000 yuan (US$2,810), much lower than that of copper.
He predicted that domestic copper output will grow at least 10 per cent next year from almost 3 million tons estimated this year.
In 2005, output amounted to 2.6 million tons, ranking China No 2 in the world after Chile.
Inspired by this year's high prices, China's copper manufacturers are aggressively building new production capacity. The industry currently has a total annual production capacity of 3 million tons.
Li Yusheng, from Antaike Information Development Co Ltd, a Beijing-based metal industry consulting firm, said copper prices are too high to remain at this level next year.
"There is an overall balance between copper supply and demand in the world which will not boost prices further," Li added.
Encouraged by bullish prices on the international market, domestic copper producers have been increasing their exports.
Data from the metal association showed China's copper exports reached 228,000 tons in the first three quarters of this year, much higher than the 140,000 tons for the whole of last year.
To reign in exports, China last month imposed a 15 per cent tariff on overseas shipments of copper, aluminium and nickel.
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