Weekly Base Metals Review 27.10.2013

Weekly Base Metals Review: Copper Declines On China Monetray Tightening Woes

27-Oct-2013

Copper prices declined on the back of crisis spilling out this time from China. Even though the PMI data released by China showed a positive picture for the manufacturing sector, markets remained worried on the monetary tightening measures from the country. Chinese banks are refraining from injecting fresh liquidity in the markets that has raised fears of tighter monetary policies in coming days. The refined Copper imports data of China was released in the week by the General Administration of Customs. As per the report, China refined Copper imports has declined by 15.3% to 2.3 million tonnes in January-September 2013. International Copper Study Group (ICSG) stated that the world copper markets were in deficit of 151000 tonnes in July 2013. Copper markets were in deficit of 93000 tonnes in January-July 2013 compared to production deficit of 552000 tonnes in the first seven months of last year. World mine production of copper in January-July 2013 was 12.35 million tonnes, up 8.6% compared to 11.78 million tonnes in January-July 2012. Refined consumption figures of January-July 2013 have been flat. The total consumption of refined Copper was 12.24 million tonnes, compared to 12.05 million tonnes in January-July 2012, marking a rise of 1.6%.