Copper & other Base Metals may also rebound from recent slumps to rise substantially on expected easing from China, the world’s largest consumer of Base Metals. There have been reports that Chinese leader Wen Jiabao said China may have to ease monetary policy soon. Copper production in 2012 has picked up, but not to the level that industry expected. Scrap supply has become the savior of the copper market for the past two years, bridging the gap between growing Copper demand and stagnant mine supply. Chilean Copper production is starting to pick up after a shaky start to the year, with a rise of 2.5% in the first half of 2012 in the world’s largest copper-mining country. Chinese Copper production is running higher than expected, growing at 20% year-over-year. Copper Trading remains on the weaker side yet because of the modest global growth seen in the first half of 2012.
Data out of China shows Lead acid battery production rose by 45% year-over-year in July alone and has risen 25% year-to-date. This should be supportive for the Lead market. Battery production represents nearly 70% of total Lead demand in China. Lead supplies have tightened because of the strength of demand, and its likely solid demand will continue into year end.
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