In the research report published Friday, leading investment bank JP Morgan forecasts that the base metal demand from China should remain ‘reasonably strong’ in 2014, although down from 2013. The demand growth will be boosted by recovery in developed markets, says the research report.
JP Morgan estimates the global copper usage growth to decline to 5% in 2014 as compared with the 10% in 2013. Also, the global aluminum usage growth is expected to decline to 8.2% from 11.5%. According to the report, the global manufacturing sector may continue to grow with strong momentum. However, the Chinese base metal demand will remain lower when compared with 2013.
With regards to copper, the huge mine supply growth has lead to high stocks of copper concentrates in 2013. The conversion of these stocks to refined copper is the key. There are probably high chances that China may witness production ramp-up following the New-Year holidays.
Meantime, the copper inventory levels continued to wane in Europe. The copper stocks in LME-registered warehouses fell 2,225 mt on Friday to touch 308,025 mt.
Also, Port Strike in Chile has considerably reduced the shipments, thereby keeping the premiums at reasonably higher levels.
No comments:
Post a Comment