Regal Group International: Chinese demand drives copper price to 26-month high.

Oct. 4, 2010 - PRLog -- Regal Group International’s data has indicated that copper continued its climb for the second day, heading for record territory and a 26-month high on the back of speculation that supply may soon not meet demand as the consumption outlook for the world’s largest user improves.

In a recent television interview the Chinese Premier Wen Jiabao said his nation would address “structural problems” and stabilize their economy by increasing domestic demand.

The premier said that he had pointed out, prior to the global economic crisis, that China's economic development lacked balance, coordination and sustainability.”

“China is still either not contributing very much or is a drag on global apparent demand growth for metals at the moment, but this is unlikely to last given the current levels of demand in end-use sectors, for which growth is set to remain robust,” an analyst at Macquarie Group Ltd. said in a recent report.

“This should mean that China is again likely to increase apparent demand whilst the rest of the world is slowing,” the report which is available to Regal Group International added.


According to the International Copper Study Group copper output will fall behind supply by an estimated 435,000 tonnes in 2011, the first shortfall since 2007. The intergovernmental organization believes the surplus will be about 200,000 metric tons this year and 166,000 tons for 2009.

Regal Group International has learned that inventories monitored by the London Metal Exchange, which are 26% lower this year than last, are at their lowest since November with copper stockpiles, according to the Shanghai Futures Exchange dropping to their lowest levels in over a year.

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