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Copperhead
11-07-2010, 05:51 PM
China Can Use More Copper Than World Has


http://www.bloomberg.com/news/2010-11-02/china-seen-using-more-copper-than-world-produces-now-with-yang-s-new-stove.html

China’s worldwide search for copper begins in the gnarled hands of 76-year-old Yang Caiguan, who is fiddling with the cables of his digital television tuner.

“The red plug should go into the red hole,” he mutters to himself, hesitating to make the connection.

Around him sit amenities of modern life -- flat-screen TV, air conditioners, washing machine, water heater and gas-ignition stove -- that were foreign to him and his wife until this year. With their new apartment in the central Chinese town of Daojiang in Hunan province, the couple acquired at least 41 kilograms (90 pounds) of copper in electrical wiring and appliances, about 10 times the nation’s annual per capita consumption of the metal.

As subsistence farmers they had used little copper for most of their lives.

The Yangs’ transformation into urbanized consumers epitomizes the Chinese government’s vision for the next -- and potentially biggest -- phase of its economic rise: bringing the prosperity of its coastal boomtowns inland, where more than half of its 1.3 billion people live, mostly in rural homes.

China is on pace to almost triple its annual use of copper to 20 million tons in 25 years, according to CRU, a London-based metals and mining consulting firm. That’s more than the world produces today. Rising demand will create a potential global shortage of 11 million tons a year by 2035, CRU forecasts.

‘Very Long Term’

“There is absolutely torrid growth taking place in central China,” says Daniel Rosen, a principal of the Rhodium Group, a New York-based economic advisory firm. “It’s going to build an Eastern China over again.”

The per-capita gross domestic product of inland provinces is less than half of that on the coast, according to data from China’s National Bureau of Statistics. Even nationwide, China’s GDP was $3,734 per person in 2009, ranking the country in between Albania and El Salvador, according to the International Monetary Fund.

“When politicians say China is a developing country, it’s true,” says Wu Jian, director general of the Rio Blanco Copper SA mine in Peru, owned by Fujian province-based Zijin Mining Group Co. “It doesn’t all look like Shanghai or Beijing.”

The rapid expansion of suburbs like Levittown on Long Island after World War II helped lift consumer demand in the U.S., the world’s largest economy. China, which leapfrogged Japan in the second quarter this year to become the second- biggest, similarly wants to grow towns and cities that will create jobs, raise living standards and boost consumption.

The country’s 10 percent average growth rate since the 1980s puts its economy on a trajectory to surpass the U.S. within 20 years, based on data compiled by Bloomberg.

bidie
11-08-2010, 05:39 AM
Wait until India also gets into the picture!

DougG
11-09-2010, 03:36 PM
China Can Use More Copper Than World Has


http://www.bloomberg.com/news/2010-11-02/china-seen-using-more-copper-than-world-produces-now-with-yang-s-new-stove.html

China’s worldwide search for copper begins in the gnarled hands of 76-year-old Yang Caiguan, who is fiddling with the cables of his digital television tuner.

“The red plug should go into the red hole,” he mutters to himself, hesitating to make the connection.

Around him sit amenities of modern life -- flat-screen TV, air conditioners, washing machine, water heater and gas-ignition stove -- that were foreign to him and his wife until this year. With their new apartment in the central Chinese town of Daojiang in Hunan province, the couple acquired at least 41 kilograms (90 pounds) of copper in electrical wiring and appliances, about 10 times the nation’s annual per capita consumption of the metal.

As subsistence farmers they had used little copper for most of their lives.

The Yangs’ transformation into urbanized consumers epitomizes the Chinese government’s vision for the next -- and potentially biggest -- phase of its economic rise: bringing the prosperity of its coastal boomtowns inland, where more than half of its 1.3 billion people live, mostly in rural homes.

China is on pace to almost triple its annual use of copper to 20 million tons in 25 years, according to CRU, a London-based metals and mining consulting firm. That’s more than the world produces today. Rising demand will create a potential global shortage of 11 million tons a year by 2035, CRU forecasts.

‘Very Long Term’

“There is absolutely torrid growth taking place in central China,” says Daniel Rosen, a principal of the Rhodium Group, a New York-based economic advisory firm. “It’s going to build an Eastern China over again.”

The per-capita gross domestic product of inland provinces is less than half of that on the coast, according to data from China’s National Bureau of Statistics. Even nationwide, China’s GDP was $3,734 per person in 2009, ranking the country in between Albania and El Salvador, according to the International Monetary Fund.

“When politicians say China is a developing country, it’s true,” says Wu Jian, director general of the Rio Blanco Copper SA mine in Peru, owned by Fujian province-based Zijin Mining Group Co. “It doesn’t all look like Shanghai or Beijing.”

The rapid expansion of suburbs like Levittown on Long Island after World War II helped lift consumer demand in the U.S., the world’s largest economy. China, which leapfrogged Japan in the second quarter this year to become the second- biggest, similarly wants to grow towns and cities that will create jobs, raise living standards and boost consumption.

The country’s 10 percent average growth rate since the 1980s puts its economy on a trajectory to surpass the U.S. within 20 years, based on data compiled by Bloomberg.

Forget wires and big screen TV's.... two words:




Indoor Plumbing

CounterStrike1776
11-11-2010, 03:00 PM
Wait until India also gets into the picture!

Then... Africa.

geo50
11-14-2010, 12:52 PM
A billion people enter the World Middle Class in the next 50 years. Consumption per capita goes from less than a kilo to 40-50. It's a lot of the red metal that has to come from somewhere.

Gumby_5
11-17-2010, 08:52 PM
High Demand is the necessity of invention.

Pitcom
11-17-2010, 09:11 PM
Forget wires and big screen TV's.... two words:




Indoor Plumbing

Many new homes no longer have copper piping installed for the potable water systems. Pex piping is becoming more popular. It is even showing up in may of the new supposed "green" buildings that are being built. I would be interested more in heating and air conditioning usage in countries like China. China is notorious for power shortages and until they build more power plants, (which would be great for copper), i don't see them expanding usage in the growing residential sectors for some time.

torpedoman
11-17-2010, 09:14 PM
A billion people enter the World Middle Class in the next 50 years. Consumption per capita goes from less than a kilo to 40-50. It's a lot of the red metal that has to come from somewhere.

you have that backward a billion of the former middle class will join the third world.

Malignment
11-17-2010, 09:18 PM
Forget wires and big screen TV's.... two words:




Indoor Plumbing

Copper will be too expensive by then. One acronym: PVC

Silvercoin
11-18-2010, 01:27 AM
what is called middle class in the west is not the same as in the east.

the middle class in the west has vast purchasing power compared to the east... at least for now!

coloredcoat
11-18-2010, 01:54 AM
In China, the most common thing that is traded(sold and the money spent) in exchange for anything would have to be rice. This will probably never change. If you consider that rice sells for about 1 yuan a pound, then it takes 25 pounds of rice to buy a pound of copper. Most folks who live in abject poverty but grow more rice than they can eat are pretty happy to trade rice for the fun stuff they need made out of copper.

coloredcoat
11-18-2010, 02:15 AM
If it were accurate, the title should probably say something more like this. "China can mine more copper than the world ever has mined." Seriously, the whole western half of China is nothing but a huge version of what the US and Mexico was in the 1800's. They have so many minerals and ore deposits virtually untouched that they aren't going to need to be importing metals beyond a certain price. After a while they will have developed their own supplies, they are working on this now. It just takes longer here for lots of really culture specific reasons.