Global copper demand will increase by 5.2% in 2021
China's copper demand will grow by 3.5% in 2021, and copper demand outside of China will grow by 7.1%
Ms. Vanessa Davidson, head of basic metals research and strategy at CRU, the recovery of China's copper demand in 2020 is driven by a large-scale economic stimulus plan, which is similar in other parts of the world. This is very important, and some of the stimulus measures focus on green technologies.
In 2020, global refined copper consumption fell by 3.3% year-on-year. Ms. Davidson said that this number could have been worse.
Since all the stimulus measures have been invested in the construction industry and infrastructure, the Chinese economy has recovered rapidly, which is of great benefit to copper demand. In 2020, world copper consumption outside of China fell by 8.8%. Ms. Davis said that China's copper consumption increased by 2% in 2020, which indeed supports global demand.
CRU predicts that global copper consumption will grow by 5.2% in 2021, of which China will grow by 3.5% and the rest of the world will grow by 7.1%. Davidson explained that in order to achieve a 5.2% increase in global refined copper demand, the rest of the world needs to increase by 7.1%.
The key factor to focus on is the needs of the rest of the world. Davidson said that China's copper consumption growth is more confident than the demand outlook in other parts of the world.
In addition, as China shifts from investment-oriented growth to consumption-based growth, China's copper consumption in the next ten years will become more dependent on the rest of the world. Davidson said that we do need some other markets in developed countries and emerging markets to start to grow, and there are some risks in this regard.
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