Copper Demand in China Could Rise as Much as 7 Percent in 2012
NEW YORK, NY -- (Marketwire) -- 08/21/12 -- Demand for copper is on the rise as copper inventories in warehouses tracked by the London Metal Exchange (LME) are at the lowest levels since the beginning of June. Reuters recently reported that after reaching summer highs copper inventories have fallen 20,000 tons to 234,550 tons. "Copper inventory levels on the LME are extremely low, and the market is vulnerable to a squeeze," said Guy Wolf, macro strategist at Marex Spectron. The Paragon Report examines investing opportunities in the Copper Industry and provides equity research on Freeport-McMoRan Copper & Gold Inc. (NYSE: FCX) and Southern Copper Corp. (NYSE: SCCO).
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According to Bloomberg news Southern Copper's Financial Planning Manager Raul recently stated that Chinese copper demand could grow by as much as 7 percent this year, surpassing supply.
China's is likely to see "growth in copper demand of 6 to 7 percent this year, which should give support to the copper market in the next few months," Jacob said on recent a conference call with analysts. "Demand from emerging economies is also growing, somewhat offsetting weaker consumption in the European and U.S. markets."
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FCX is the world's largest publicly traded copper producer and has a dynamic portfolio of operating, expansion and growth projects in the copper industry. FCX is also the world's largest producer of molybdenum and a significant gold producer. Second-quarter 2012 consolidated sales of 927 million pounds of copper and 266 thousand ounces of gold were higher than the April 2012 estimates of 895 million pounds of copper and 235 thousand ounces of gold.
Southern Copper Corporation is one of the largest integrated copper producers in the world and currently has the largest copper reserves of the industry. Total copper production during the first six months of 2012 was 313,500 tons. Molybdenum, silver and zinc production also saw increases of 6 percent, 14 percent, and 8 percent.
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