China's top copper tubes maker to raise output on better demand
Post Date: 01 Dec 2012 Viewed: 338
China's top maker of copper tubes, Golden Dragon Precise Copper Tube Group, expects 2013 production to rise by 14 percent from a year ago, as signs of an improving economy inspire cautious optimism, boosting orders at home and abroad.
China is the world's top copper consumer, accounting for 40 percent of refined demand last year. But subdued demand following a fall in manufacturing in Europe, its main export market, has led to record stockpiles, squeezing prices.
Golden Dragon, which makes copper tubes for air conditioning and autos among other uses, will produce about 400,000 tonnes of copper tubes in 2013, after a 5.4 percent fall in output this year to 350,000 tonnes, chairman Li Changjie said on Thursday.
That works out to about 5 percent of China's 2013 refined copper consumption of 8.1 million tonnes estimated by state-backed research firm Antaike, which Golden Dragon would need to buy in domestic and overseas markets.
"Copper consumption growth will be between 4 and 5 percent next year," Li told Reuters in an interview. That matches, or only slightly exceeds, this year's figure of 4 percent. "Anything above that will be difficult to achieve because of economic restructuring and industry consolidation."