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| Friday, September 05, 2008 23:36:16 |
Cooper shortage would roam Mainland
China could soon face a shortage of refined copper and may have to turn to imports, mainly because production from domestic producers is falling, The Standard reported.
"China produced more copper in the first half because the smelters held large inventory of concentrate. But they have used up most of the inventory," said Zhang Heng, analyst for Jinrui Futures, a unit of Jiangxi Copper, the mainland's largest producer.
Yang Jun, who heads a team representing the eight smelters, said last month smelters might cut production by 10 percent in the second half. Analysts say to the paper that could mean a cut in 100,000 tonnes of copper.
It is believed that the State Reserves Bureau may end its latest copper sales soon and need to replenish stocks. This adds further pressure on the need for imports. If China does turn to imports again, copper could soar again from the 7800 Us dollars price it has ranged in lately on world markets.
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