The world’s largest copper producer Codelco said it expected China’s copper demand to slow in the second half as Beijing’s efforts to control inflation and curb lending take effect, state media reported. Diego Hernandez, the chief executive of the Chilean miner said that copper prices would fluctuate around current levels. Demand for copper has been affected particularly by government tightening measures aimed at keeping the property market under control; construction makes up about 25% of China’s demand for the metal. Hernandez noted that reduced demand would be accompanied by reduced supply as economic uncertainty reduced miners’ interest in expanding production. Codelco says it will invest US$15 billion to increase its copper output to 2 million metric tons over the next five years.
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