Demand for copper has grown significantly during the past few years supported by continued strong usage in the already industrialized world and by the enormous economic expansion taking place in China and India; whose demand is expected to continue to grow for several years to come.  In the same time period, copper supply has not kept pace with demand and warehouse supplies have shrunk dramatically.  As a result, the world’s need for copper has become almost insatiable.  China is estimated to have consumed about 3.65 million tons of refined copper in 2005 and the figure hit 3.9 million in 2006.  Goldman Sachs forecasts demand for the metal in China to increase by 13% in 2007.  The Chinese economy grew at 10.7% (fastest in more than a decade) in 2006.  In 2006, China accounted for 22% of global copper consumption.  Another major driver of demand has been the rapid growth in India.  According to Credit Suisse, India’s economy is expected to grow at 8%- 10% per year over the next five years.  Although India accounts for only 3% of total global consumption, the demand growth in India is expected to become more significant in the copper market, as their share of global consumption rises.

Demand, supply and prices	(in thousand tonnes unless mentioned)				2005	2006
	2002	2003	2004	2005	(Jan-Apr)	(Jan-Apr)
Copper production	15,269	15,234	15,823	16,446	5,310	5,621
Copper consumption	15,166	15,661	16,725	16,510	5,436	5,544
Approx.Cu price(31 July; US$/tonne)	$1,510	$1,770	$2,901	$3,760	$3,760	$7,850