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Global copper price may calm down

(Xinhua)
Updated: 2006-03-25 10:06

The surge in the global price of refined copper is expected to calm down as China's export of refined copper will be higher in March than in February, reported yesterday's China Securities Journal.

The global high copper prices and the country's relative low export tariffs on refined copper are cited by the newspaper as the main force behind increased exports.

However, the report did not elaborate on how much refined copper China exported in February this year.

Last week, the copper price hit a record 5,160 U.S. dollars per ton on the London Metal Exchange (LME).

Industry insiders said the increase in exports would not cause short supply in the domestic market as the skyrocketing copper prices have dampened Chinese enterprises' consumption enthusiasm.

Chinese copper dealers have been careful to increase stocks due to the high prices, they analyzed.

At the same time, China's macro-control policy on the real estate industry has also had a negative impact on the consumption of copper as the demand for copper tubes used for manufacturing air conditioners was reduced.

A batch of small copper processing factories have to reduce output or even go bankrupt after suffering economic losses.

Industry insiders predicted that China's copper consumption would not increase dramatically in the near future.

Starting from April 10, China will raise the export tariff on refined copper and copper alloys to 10 percent, while the export tariff rate on copper products will rise from zero to 10 percent.