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As the copper market will react to the decline of China's economic growth

17 February 2014

Fast and rapid development of the Chinese economy has had a direct impact on many areas of the industry in the context of the entire world community. After all, the expansion of production capacity in the large eastern Power demanded more and more revenues much-needed resources. Especially much similar situation affected the copper segment of non-ferrous metals market. The reason was not only the relevance of the material in various industrial process stages in the production of competitive products, but also the value of banking metal. Not so long ago it served as a guarantee of copper for the Chinese banking system, enabling them to get a loan from the very real currency under very low interest rates. Although these loans and were the backbone of the shadow economy, and thus weaken the economic potential of developing countries, but the popularity and the amount of copper consumption in view of all these circumstances in China was sufficiently large. Today the situation in the Chinese state is somewhat different. Against the backdrop of all-out struggle against the shadow banking policies that have deployed public services, in China's economy in recent years it became evident a significant decline and calm. All these circumstances promise is not the best way impact on copper demand.

Today many independent analytical agencies predict a change in the position of a stable and lasting popular non-ferrous metal market. After all, despite the fact that the filling of the raw materials market has been very tight, but a strong demand for the popular metal is allowed to maintain the stability of the value of material equivalent. The basis of this demand was in China's interest, which reached its peak at the end of last year, and now has begun to decline. Additional negatively affected by long-term holiday celebrations in China dedicated to the arrival of the new year. This set of circumstances, affect the validity of market reports, in January and February of this year. Make conclusions about the amount of consumption of copper material Chinese manufacturers will only be the beginning of spring. But by this time the stability and transparency of the stock ticker can greatly suffer. Therefore, the prospects for the development of copper production in the near future remains a big question, and do not cause optimistic forecasts.

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