Copper product demand to contract in China: Luvata

Oct 10, 2012 | 04:04 PM | Mark Burton

Tags  Luvata, Bob Kickham, copper, premiums, copper products, demand, China, Mark Burton

LONDON — Luvata UK Ltd. has seen Chinese demand for copper products contract so far in 2012, senior vice president and chief procurement officer Bob Kickham told AMM sister publication Metal Bulletin Monday.

"We planned for growth but we saw some contraction, and it’s the first year in as many as I can remember where that’s happened," he said.

The outright decline in sales volumes runs counter to the prevailing analysis, which indicates that China’s end-use demand grew in 2012, albeit at a slower pace than in previous years.

China’s apparent usage—not taking into account unreported changes in inventories held by consumers, producers, traders or the State Reserve Bureau—grew 27 percent in the six months to July, driven by an 80-percent increase in net imports, according to the Lisbon, Portugal-based International Copper Study Group (ICSG).

But as the ICSG pointed out, anecdotal evidence suggests that bonded stocks in Chinese warehouses have surged during the same period, as demand has failed to keep pace with stronger imports.....