Copper demand falls in Chinese market

Copper is waving a red flag. “Recent movements in copper inventories highlight the lack of significant demand for the metal, particularly in the ever important Chinese market,” analysts at BMI Research have written in a note.

The country’s demand matters because copper is used to make items as varied as electrical cables and coins, and China is the world’s largest importer. “While the corresponding decline in Shanghai inventories largely offset the jump in [London Metal Exchange], the shift suggests that China’s strong H116 economic data does not in fact reflect improving demand growth,” says BMI Research.

“We expect China’s refined copper imports to decelerate over the remainder of the year, and will remain wary of any other rapid movements in inventories.”