Chinese commodity demand fostering growth in Chile
Chilean copper mining giant Codelco has announced plans to invest 3.2 billion USD in 2011 amidst rising demand from China for the red metal. China is currently the world’s #1 consumer. Click here to see a breakdown of consumption globally.
The debate over whether China’s demand is sustainable has affected copper prices recently. JP Morgan Securities metal strategist Michael Jansen has said global supplies are down therefore driving up copper prices.
2010 forecasts estimated a 14% increase in demand by China while demand in 2011 will slow because of government intervention. Either way, Codelco CEO Diego Hernandez is placing his bets on China.