One source of relief for copper producers has been the recent strength of China’s copper imports. This has been somewhat surprising given that other indicators point to weakening Chinese economic activity. One explanation has been that copper is being imported as part of financing deals rather than for end-use in China. It is impossible to quantify the scale and impact of this activity with any confidence. But, in our view, a combination of a clampdown by the authorities and lower returns on the deals will mean that their ability to impact the copper market will diminish in 2014.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services