Oversupply of refined copper in China will increase in 2014

According to Chinese industry experts, the surplus of refined copper in the country is expected to expand further in 2014 amid weak demand from the mortgage sector and the construction industry.

According to experts, August is traditionally considered a month of weak consumer demand. The emergence of consumer demand during the peak season in October is also unlikely to provide a significant boost to refined copper consumption in the country, which will eventually lead to a higher surplus in 2014. Experts note that while sustained growth in infrastructure development is projected, demand from the private construction sector is likely to slow.

At the same time, production of refined copper in China has been growing for the third month in a row, as the capacity of the smelting furnaces expands. In July, China's refined copper production rose 1.6 percent from the previous month and 16.5 percent from a year earlier, to 633,518 tonnes.

In a report released by the state agency Antaike on the results of copper consumption in the first half of the year, the forecast for a surplus of copper in the country was raised to 1,180 thousand tons, compared with an earlier forecast of 730 thousand tons.

Meanwhile, consumption of refined copper in the country is expected to increase by 7 percent in 2014 compared to last year and will amount to 6.83 million tons. Total consumption of copper and its alloys is projected to increase by 6.7 percent over the previous year and reach 8.75 million tonnes in 2014.