China Copper Cable Demand to Rise After Olympics

China's demand for cables and wires will recover after the Olympics as power projects suspended because of the games resume, according to Nexans (China) Wires & Cables Co., a unit of Nexans SA, the world's biggest cable maker.

Cable and wire manufacturers account for half the consumption of copper in China, the world's biggest user of the metal. Demand for cables and wire has slowed this year as power infrastructure projects in northern China were suspended because of the Beijing Olympics and government tightening policies curbed economic growth.

China may consume 10 percent less copper this year because of credit tightening policies by the government, Maike, the country's largest copper importer, forecast in January.

In my view as long as China economy growth is stable, they will proceed on to their infrastructure development. But upside may be capped at the end of September or early October, which is the down season for copper.