China's copper consumption may climb 5% to touch 7.7 mn metric tons as power industry demand expands.
Yang Changhua, who's studied the market for more than a decade, said in a phone interview from Beijing to Bloomberg News. "It could turn out to be even lower, and we're not optimistic about next year,"
This waning demand scenario has made copper mining companies like BHP Billiton and others to cut back on production eventhough they are long on copper for the long term.
"The long term copper outlook remains positive," Harding--Chief of Rio Tinto-- told reporters at Rio's 55,000 tons per year Northparkes copper mine in western New South Wales and was quoted by Reuters.
Meanwhile, the largest rival of Rio Tinto, BHP Billiton, the mining giant has shelved three multi billion expansion projects recently to accommodate dampened momentum in prices.
The company is investigating an alternative, less capital-intensive design of the Olympic Dam open-pit expansion, involving new technologies, to substantially improve the economics of the project.
"However, the long term outlook for the copper market remains strong and we will continue to work closely with all stakeholders as we refine our longer term development plans for this unique, world class ore body. We want to find the right solution to unlock this resource,? he said.
On the other hand, the Chinese economy is targeted to grow 7.5 percent this year.
Meanwhile, MCX Copper may trade sideways between 421-427 ongoing week on weaker Euro and over debate on EU rescue fund and stimulus hopes from US.
?Copper have important support at 419 and resistance at 427.?, said Amrita Mashar, Manager Research, Commodity Online.
Base metal prices traded steady on mixed economic outlook eyeing Central Bankers? meet on Friday. Positive US economic data kept momentum in prices move zigzag way in the morning session.
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