Chinese copper and aluminum demand will ebb in 2014

October 10 news, Goldman Sachs Group (Goldman Sachs Group Inc.) said that China's strong demand for copper and aluminum supported by engineering construction will continue at least until the middle of next year, and then in 2014, this wave of demand will ebb. China is the world's largest copper consumer.

Goldman Sachs analyst Max Layton said in a research report today that the prosperity of China's construction and housing markets starting in 2009 is entering its final stage, meaning that the market is for raw materials such as steel, iron ore, coal and cement. The demand heat in the initial stage has already ebbed. The increase in demand for copper and aluminum caused by the completion of the project has already begun to “gain momentum”.

Copper rose by 140% in 2009 as China began to launch stimulus plans and supplement copper stocks.

Morgan Stanley expects China’s copper demand to account for 41% of global demand, and aluminum demand accounts for 45% of global demand.

Goldman Sachs stated that copper consumption in housing and property accounted for 49% of copper demand, and copper usage in electrical box infrastructure was 12% and 13% of copper demand respectively.