China’s Copper Demand is steady growing amidst economic transition is an unquestionable fact. According to the latest evaluation in 2018. The demand for refined copper was forecast to increase by 3.6% to 11.15million tonnes from 10.76 million tonnes this year. Which copper inventories increased 18% to 127 thousand tonnes.
Furthermore, ICSG (International Copper Study Group) said that in 2017 and 2018, the increase production of global refined copper came mainly from China. Which has become the largest producer. In terms of consumption, the demand forecast of apparent copper in 2017 will increase by 1%. But the growth in 2018 was expected to reach 3%. In 2017 and 2018, while global copper demand outside China will be projected to grow by 0.5% and 1.5% respectively.
1. What Is The Situation of China’s Copper Demand
Copper, often called “Dr. Copper” for its ability to diagnose the health of the global economy. It holds a uniquely critical position in China. As the world’s largest consumer, accounting for over half of the global refined copper demand. China’s appetite for the red metal is a primary focus for international markets. Currently, the most significant characters are the demands by robust fundamentals and a nuanced shift in its driving forces.
2. The Situation of China’s Copper Demand In Last Decades
For decades, China’s massive infrastructure and property boom overwhelmingly propel its copper consumption. The extensive use of copper in construction for wiring, plumbing, and power grids created sustained, high-volume demand. While the property sector is currently undergoing a correction. The sheer scale of ongoing urbanization and essential infrastructure maintenance continues to provide a solid floor for consumption from this segment.
3. What Is The Growth Engine For China’s Copper Demand
The most significant growth engine for copper demand, however, is now clearly the nation’s strategic push for energy transition and technological advancement. The “new three” industries—electric vehicles (EVs), lithium-ion batteries, and solar PV—are incredibly copper-intensive. An electric vehicle, for instance, uses about four times more copper than a conventional car. The rapid expansion of EV manufacturing, coupled with the build-out of supporting charging infrastructure and national power grids to accommodate renewable energy. This creats a substantial and long-term source of demand. Furthermore, investments in high-tech manufacturing and data centers, both reliant on extensive electrical systems, contribute to this growing trend.
Despite global economic headwinds, China’s domestic demand has shown remarkable resilience. Government stimulus policies aimed at stabilizing growth often translate into support for manufacturing and green initiatives, indirectly bolstering copper consumption. While the annual growth rate may not reach the dizzying heights of the past, the overall volume remains immense.
In conclusion. China’s copper demand is transitioning from being led by traditional heavy industry and construction to being increasingly driven by the green and high-tech sectors. This evolution suggests a future of more sustainable, policy-backed demand growth, solidifying China’s pivotal role in the global copper market for the foreseeable future.
