Copper dipped further lower on Wednesday as concern grew over demand in top consumer China. Gross domestic product rose 7 percent from a year earlier, in line with economists' forecasts. While the growth rate means China still ranks as one of the world's fastest growing major economies, it marked the country's slowest quarterly expansion since early 2009.
China, which consumes some 45 percent of the world's copper, is in shambles on the back of worries of the demand.
The Asian giant's export sales shrank 15 per cent in March, deepening concern about sputtering growth. Second-quarter demand is expected to improve, but that will just stop Copper prices weakening significantly. We still expect a surplus of about 300000 tonnes.
China's copper imports surged 46.4 percent in March as firms resumed shipments after the Lunar New Year holidays the month before. Arrivals of anode, refined copper, copper alloys and semi-finished copper products reached 410000 tonnes in March, compared with 280000 tonnes in February, data from the General Administration of Customs showed on Monday.
February's shipments were the lowest since June 2011 as slowing economic growth curbed demand. In the first quarter of 2015, copper imports dropped 17.1 percent to 1.1 million tonnes from the same period last year, the data showed.
Supply disruptions limited copper's losses, however. Copper output in the Atacama region of Chile that was hardest hit by floods last month is still almost completely at a standstill. On MCX, Copper was trading at Rs 371 per kg, down 0.40%. The prices of Copper was at Rs 374.3 per kg and a low of Rs 370.45.
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