Copper demand expects to grow in China as economy boom

Copper demand is expected to grow in China as its economy booms, but some investors fear the growth rate may slow due to government measures to curb inflation. China is the world's top copper consumer, accounting for 40 percent of global demand. Lars Steffensen, managing partner at Ebullio told the Reuters Global Mining and Steel summit,did not see efforts to curb inflation as a threat.

"Longer term they will make the growth in demand sustainable. The more Chinese raise rates the better the future looks for China," he said. "I'm quite bullish for China."

Investors have lamented a dearth of buying by China as it has dashed market hopes by not returning to the market as expected after its New Year holiday in February.

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"They are well supplied but eventually they are going to come, and they will come in the second quarter," he said.

Analysts are also watching to assess any impact from Japan, the world's third-largest economy, where the earthquake and tsunami are threatening to strangle economic activity. Japan accounts for about 5 percent of global copper consumption.

"Within a couple of months, things will come back to normal. They will rebuild, commodities will be used," Steffensen said.