Copper up slightly on Chinese economic growth

Copper prices got a much-needed – but minor – boost on Friday on news of strong economic growth in China made headlines.

The Chinese economy is expanding at an accelerated rate Рby 7.8% in Q3 2013 compared with 7.5% in the previous quarter, according to a Bloomberg report. 

A recent report by energy and metals analysis firm Wood Mackenzie also forecasts that China will become the world’s main consumer of base metals by 2017.¬†¬†The Asian giant¬†currently accounts for 40% of global copper demand.

In September, Chinese copper imports hit a high for the year, according to the Wall Street Journal.

Copper futures rose slightly on Friday Рby 0.1%  for December delivery. Benchmark three-month copper on the London Metal Exchange was up 0.2%, according to Reuters. 

But China’s Q3 results didn’t erase all scepticism – there’s some concern that the September boost is only temporary.

Speaking with Reuters, a senior metals analys at UOB Kay Hian Securities in Hong Kong said she hadn’t “really changed [her] bearish view for 2014 and 2015” because she expects “China’s industrial production growth to slow as the growth becomes less investment-driven.”

Meanwhile, many analysts Рand companies Рare predicting a copper surplus this year and next.

 

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