Copper Price Could Soften As Chinese and US Economies
Source: Mineweb.com (5/19/08)
Although copper bulls say the copper price will reach $10,000/t and higher on the back of China's economic growth, the Virtual Metals Research Group says this is unlikely. They expect the copper price to soften after 2010 as slower growth in China and lower US demand coincides.
The Fortis/VM Asian Metals Monthly report says expectations that China will continue importing "ever-larger" volumes of refined copper imports will be disappointed as economic growth in the country slows.
China's political leadership is struggling to steer the country between "burgeoning inflation" and the "disappointing economic expectations" of rising consumer wealth and Chinese officials have warned that their economic policy will be guided by "gradually tightened credit expansion".