Sierra Resource Group Inc. (fka SIRG)

[abc1938]

LONDON – Goldman Sachs (GS) said Thursday it expects Chinese copper demand growth to stay sluggish until the end of the third quarter and predicts a 3% year-on-year rise in overall consumption for 2012, rising to 8% in 2013.

Fourth quarter copper demand will accelerate to between 10% and 15% and through much of 2013, the bank noted, driven by an anticipated pickup in residential property sales, the build out of social housing, the implementation of the recent home appliance subsidy program, and solid automotive output growth.

Despite the year-on-year declines in demand in April, the level of demand remains exceptionally high, Goldman said. "April 2012 demand was the second highest on record, with April 2011 being the highest," it added.

Even in Goldman Sachs' 'bear case' scenario, where automotive output grows at half the rate of its 2012 and 2013 forecasts and residential property sales fall 10% this year and are flat in 2013, copper consumption should still grow by around 1% 2012 and 3% in 2013, it said.

The bank's current forecasts are based on expectations of Chinese property sales remaining flat in 2012 and growing 10% in 2013, auto sales growing 10% in 2012 and 8% in 2013 and demand for home appliances remaining flat this year and growing 8% in 2013.



Read more: http://www.foxbusiness.com/news/2012/05/24/goldman-sachs-sees-3-china-copper-consumption-growth-in-2012/#ixzz1vn49Nr4r