12 AUGUST 2011bloomberg
Aluminum Substitution to Dampen Korea Copper Demand, Group Says
Edited by : AL CIRCLE
1 min read
Copper demand in South Korea, Asia’s third-biggest consumer, may grow at a slower pace than forecast as high prices prompt some users to switch to cheaper aluminum, a local industry group said.
Prices of copper, used to make cables and wires, have jumped 23 percent in the past year and reached a record $10,190 a ton in February as China-led demand outpaced supply, boosting costs for manufacturers and builders. Aluminum, a substitute for copper, gained 12 percent in the period.
“Copper prices have gone up too high, widening the price gap with aluminum,” Kim said in his office. “As the gap is somehow being maintained, end-users are seeking cheaper substitutes such as aluminum and stainless steel.”
Prices of copper, used to make cables and wires, have jumped 23 percent in the past year and reached a record $10,190 a ton in February as China-led demand outpaced supply, boosting costs for manufacturers and builders. Aluminum, a substitute for copper, gained 12 percent in the period.
“Copper prices have gone up too high, widening the price gap with aluminum,” Kim said in his office. “As the gap is somehow being maintained, end-users are seeking cheaper substitutes such as aluminum and stainless steel.”
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