China consumes approximately 40% of the world's copper, making it by far the most important end market for the yellow metal. Copper prices are at near record highs currently (in mid-2011) a large part due to the strong demand from China, as well as flattening mine production of copper.
What exactly, is driving the massive consumption of copper in China? Copper is by far the best electrical conductor of the base metals - copper is approximately twice as conductive as its closest base metal substitute, aluminum -- making copper essential in any structure or product that utilizes electricity. It follows that as China industrializes, it will be a massive consumer of copper. According to BGRIMM, a copper research agency in China, construction and infrastructure accounted for 56% of total copper usage in China in 2007, and the broad category "general consumer goods" accounted for an additional 27% of consumption
According to copper.org, Copper has its largest use in residential and office construction as building wire -- electrically conductive wire built in the structure in order to allow electricity to be used in the structure through electrical outlets, air conditioners, computers, and other devices. The relative percentage useage of copper in a multi-family unit according to the copper.org is as follows:
consumption numbers to give more detail on these overall categories. What is the percentage of copper in China consumed by laptop computer production (a laptop is approximately 6.9% copper by weight)? Office building construction? Mobile phone manufacturing -- note that the average mobile phone is approximately 13% copper by weight.
The author has calculated the expected copper consumption in China by residential and office construction, mobile phone, television set, computer (both desktop and laptop), power and telephone line, and automotive production. These results are presented in figure 3 and 4 below. Interestingly, even as China is, in the World Bank's words, the "world's manufacturing center," accounting for the manufacture of approximately 90% of the world's laptops, 50% of the world's mobile phones, and 30% of the world's television sets (among many other products that use copper) it appears that the overwhelming majority of copper in China is used in residential and office construction. The author's calcuations puts office and residential consumption of copper at 82.4% of the total consumption
consumption numbers to give more detail on these overall categories. What is the percentage of copper in China consumed by laptop computer production (a laptop is approximately 6.9% copper by weight)? Office building construction? Mobile phone manufacturing -- note that the average mobile phone is approximately 13% copper by weight.
The author has calculated the expected copper consumption in China by residential and office construction, mobile phone, television set, computer (both desktop and laptop), power and telephone line, and automotive production. These results are presented in figure 3 and 4 below. Interestingly, even as China is, in the World Bank's words, the "world's manufacturing center," accounting for the manufacture of approximately 90% of the world's laptops, 50% of the world's mobile phones, and 30% of the world's television sets (among many other products that use copper) it appears that the overwhelming majority of copper in China is used in residential and office construction. The author's calcuations puts office and residential consumption of copper at 82.4% of the total consumption
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