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Metal sector set for bumper year

By Gong Zhengzheng (China Daily)
Updated: 2007-03-27 08:43

Li Yusheng, also from Antaike, said copper demand in China would rise by 5.5 percent to 3.8 million tons this year.

But the pace is down from the 9.2 percent posted in 2006, Li said, attributing this largely to high copper prices.

"Due to lofty copper prices, many copper users in China are shifting to other relatively cheap metals, such as aluminum and alloy, to cut costs," he said.

But the two Antaike analysts said prices of both aluminum and copper would decline this year from the sensational levels of 2006.

Liu said average aluminum prices in China would stand at around 18,000 yuan per ton this year, down from more than 20,000 yuan in 2006.

Meanwhile, Li said, domestic copper prices would tumble to some 50,000 yuan per ton on average, from 60,000 yuan.

Last year's bullish prices saw the non-ferrous metal industry rake in 110.03 billion yuan in profits for 2006, doubling the previous year's total, according to the association.

Fixed-assets investment in the sector reached 118.08 billion yuan last year, up 36.44 percent.The growth rate was down 6 percentage points from 2005 as a result of the government's macroeconomic controls.

(China Daily 03/27/2007 page14)