China's demand for base metals growing more than double GDP

Demand for base metals in China is growing “about 10% higher than the GDP growth rate,” according to Fan Shunke, president of China Non-ferrous Techno-Economic Research Institute, Reuters reported. Domestic GDP growth is forecast at around around 9% this year. The global downturn is unlikely to effect demand, as most of the metals are consumed in China, he said, citing their necessity for the industrialization. Imports of refined copper rose 21.2% in August compared to July, and 14.4% from a year earlier. Despite the financial crisis, Chinese imports of copper rose 50% from 2006 to 2010. China’s 12th Five Year Plan, from 2011 to 2015, calls for increased mining capacity, but imports will likely continue to make up the shortfall.