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Base metals affected by exponential market falls or are the Chinese buying everything?Thursday, 22 September 2011
The financial turmoil has spread to the commodities market as base metals such as copper and nickel has plummeted in today's trading.
But for the really big consumer, the Chinese industry, demand for metals continues to grow unabated.
In the shadow of financial turmoil and the pressure on base metals on world commodity exchanges a group of Chinese commodity analysts are travelling around Europe and talking of how the economic giant in the East continues to increase purchases of base metals from around the world. And demand is expected to increase in coming years.
“The need for imports will continue to be big,” says Professor Zhau Wuzhuang at the Chinese research firm Antaike.
AdvertisementWhen the Swedish mining and metals industry officials met with the Chinese in Stockholm today one of the core issues was that the Chinese are carrying on investment in own production, although this will be relatively modest.
According to estimates from research firm Raw Materials Group, China is surprisingly small investors internationally - outside their home country, the Chinese companies own only half a percent of the world's metal production.
This Magnus Ericsson, President of the Raw Materials Group, see no change in the coming years.
“Looking at the future and what projects they have there is not much either. There is a vast exaggeration to say that China is taking over Africa, or vacuuming the world on new deposits. But it is slow for them and the big problem is that there is no experience from working in the mining sector internationally. They will continue to be forced to buy from Western companies,” he says.
By Scancomark.se Team