Copper demand in China is improving. Industry analysts say that copper demand will remain strong in the next quarter as the Covid outbreak restrictions end.
The inventory of copper in warehouses, which has decreased by 28% over the past three weeks, fell to 182,341 tons, according to the Shanghai Futures Exchange. Chinese analyst He Tianyu stated that copper demand will remain strong throughout the second quarter.
Market representatives said that large-scale wire rod producers are operating at almost full capacity at 85-90%, and scrap supplies may be low due to falling copper prices and rising consumption.
Yangshan copper premium more than doubled in a week last Thursday, reaching $47.50 per ton.
Rising copper prices provide much-needed support for the country, which is affected by the economic problems in the USA and Sweden.
The completion of housing, which increased by 8% on an annual basis in January-February, brings about the recovery in the real estate sector. This recovery also strengthens copper producers as a result of increasing copper cable orders.
A Chinese copper producer stated that air conditioner manufacturers, which received the highest demand in March-June, were also positively affected by the recovery of the copper pipe market.
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