China’s copper consumption grew by 2.8 per cent in 2016, high than market expectation, SMM copper analyst said at SMM 2016 China Metals Summit (CMS) in Shanghai from Nov. 10-11.
In 2016, the power sector, one of major copper consumers in China, staged a strong performance thanks to rapid growth in power grid investment as showed in SMM monthly survey of wire and cable producers, and stimulus policies for PV, SMM copper analyst told attendees at the summit.
But, the growth of power grid investment is expected to fall in 2017, SMM added. The destocking in real estate market will likely come to an end in 2017, and SMM takes no optimistic outlook for investment and growth of completed area in the real estate sector.
In the automobile market, production and sales are growing rapidly due to positive policies. “China’s copper consumption growth, after a better-than-expected performance in 2016, will drop slightly to 2.55 per cent in 2017, and then rebound in 2018,” SMM predicted at the summit.
Copper Prices to Average $2.22 per pound in 2017, Cochilco Survey
A recent Cochilco survey shows copper prices will average $2.22 per pound in 2017, wenhua.com reports. Cochilco said 15 experts participated in the survey. Their forecast is based on Peru’s increasing copper ore supply due to new mines coming online and market expectations of the US dollar’s devaluation.
COMEX copper jumped to a 16-month high of $2.551 per pound on the heels of Trump winning the presidential election.
China and World Economy to Rebound in 2017
Economic growth in China and world at large is expected to bottom out in 2016, said Chen Dongqi, Vice President of the Academy of Macroeconomic Research of NDRC, at SMM 2016 China Metals Summit (CMS) from Nov. 10-11.
Mr. Chen expressed his optimism towards economic output at the summit in Shanghai.
“Chinese and world’s economy will rebound in 2017, and China’s growth is expected to maintain between 6.5-7 in the future,” Mr. Chen told attendees at SMM Summit, one of China’s largest annual gathering of base metals industry.
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