[Ferro-Alloys.com] China may end up with 1 million metric tons of copper in its inventory as a result of both high rates of production and import of the metal, according to a recently note from Deutsche Bank AG.

 

Without more restocking, any rally in copper prices that results merely from higher expectations probably won't last, said Laura Zhai, an analyst at the bank.

 

While total copper cathode consumption may rise 5 percent this year to 7.7 million metric tons, that isn't likely to happen without greater increases in the second half of the year, since the demand for the metal was up only 3.6 percent in the first half year, according to the report. From 550,000 to 575,000 tons of copper is probably held in bonded warehouses in China. (Source: China Daily)