China's electricity grid is only 1/5 the size of the US, with a country over 1 Billion people. Compare this to 280 million people in the US? Rapid urbanization of China is increasing demand for Copper Cable at the moment for High Voltage Grid's. Continuous cable is needed and manufactured for up to 20km long.
Interesting to note on the LME, Copper is at its shortest supply in 5 years with only 213,000 tonnes left stockpiled in LME Warehouses. In just 2 days, last week LME stockpile levels dropped 12,000 tonnes. Steel Production in Europe, is growing for the first time in 7 years, with the car manufacturing industry showing a modest recovery. For the the first time in over 30 years, US Construction activity, is gaining momentum and starting to show some good green growth shoots, with strong expenditure from the public sector. These are all good leading indicators for the worldwide Copper industry.
A great week to make a major announcement anyway.
SMD Price at posting:
4.3¢ Sentiment: LT Buy Disclosure: Held
