Copper demand will grow at 4% for a decade, Rio TiCopper demand will grow at 4% for a decade, Rio Tinto says
Rio Tinto said global demand for copper will grow 4% a year for a decade or more
Rio Tinto said global demand for copper will grow 4% a year for a decade or more led by sales to China.
"That4% growth can be sustained for at least a decade or even a generation,"Vivek Tulpule, chief economist of London-based Rio Tinto, said April9 at a briefing in Melbourne. That`s above historical demand, he said."It`s a very tight market."
China`s 11.4% economic growth in2007, the fastest in 13 years, fueled demand for copper and pushedprices to a record US$8,820/t on the London Metal Exchange on March 6.It may increase imports of copper by 20% to a record this year,Trafigura Beheer BV, the nation`s top supplier, said April 9.
"In2009, either early or late, there will be an almighty rush to restockcopper and we could see quite extraordinary things happen to theprice," Tulpule said. He wouldn`t comment on specific prices."It`sentirely possible we have not yet seen the top."
Rio Tintorose as much as A$2.80, or 2%, to A$140.20, and was at A$137.50 at 3:05pm. Sydney time on the Australian Stock Exchange. It has gained 3% thisyear compared to a 13% decline in the benchmark index.
Chineseimports of concentrate, or processed ore containing copper, may rise to5.4Mt from 4.5Mt in 2007, Trafigura said April 9. China would becomethe world`s top buyer, surpassing Japan which bought 5.05Mt last year.
Theprice of copper has gained 28% on the London Metal Exchange this year.It fell in London overnight, snapping a four-day advance, onspeculation a US economic slowdown will erode demand for metals.
"Theslowdown in the US economy is not expected to have an effect oncommodity demand," Tulpule said. "If the Chinese economy does slow, thegovernment could spend money and take its foot off the brakes onspending."