Investments in the energy sector of China is reduced
According to data provided by the China Electricity Council, for the period from January to June 2014 investment in the energy sector decreased by 0.6% compared to the same period last year. In 2013 China's energy sector accounted for about 50% of the demand for copper. Analysts will be forced to revise forecasts for copper this year, given the unexpected drop in investment in the state-owned company «Antaike», aimed at the energy sector. The company's management intends to evaluate the investment cycle from the beginning of the second half of this year. In the event of further decline in investment and a lack of growth in this area will require an adjustment of earlier forecasts. Studies conducted with the support of the state apparatus, predicted growth of consumption of the red metal by 6.7% year on year, which is about 8.75 million. Tons.
The already difficult situation with a red metal consumption complicates rather tight credit policy of banking institutions for small and medium-sized manufacturers that arose as a result of suspicions against the improper use of credit funds. To date, the importers having considerable difficulties in obtaining letters of credit, causing delayed delivery times. According to analysts, demand for refined copper in China in the second half of 2014 largely depends on investment in the energy sector and banking institutions with respect to credit conditions.
Published their own forecasts for 2014 regarding the production department in Peru Chinese holding «Chalco». Mining and Metallurgical Complex «Toromocho» began its work in December last year, and today it still has not received the full capacity. According to preliminary calculations, copper products produced at the facility, should be between 100 to 120 thousand tons in 2014. However, given the impact of negative factors, such as weather conditions, problems of technological order and various protest actions on the part of the public and workers, the production plan has been reduced to the level of 80−85 thousand tons.
Chinese holding «Jiangxi Copper» published the results for the first half of 2014. Volumes of production of copper cathodes totaled 569,000 tons, copper rod 362 thous. Tons. Production of blanks, components and cables of copper increased by 12.7% compared to the same period of 2013, amounting to 35.5 thousand. Tonnes.