Jiangxi Copper Co Ltd , China's top copper producer, expects market fundamentals for the metal to remain strong this year, its chairman said on Monday.
Chinese demand has been a source of concern for the global market in recent weeks as it has failed to pick up after the week-long Lunar New Year holiday in late January, making some analysts question the sustainability of copper prices.
"China's copper market fundamentals will remain healthy, which will support copper prices," Chairman Li Yihuang told reporters on the sidelines of the National People's Congress, China's parliament, adding that he expected domestic demand to rise about 7 percent in 2012.
Li said the company saw no signs yet of slowdown in China's copper consumption.
However, overall copper prices should remain volatile because of global economic instability, he said.
Li's prediction of copper consumption growth this year is higher than 5.9 percent expected by state-backed research firm Antaike.
Antaike has forecast real consumption of refined copper -- the amount used to manufacture products -- in China to rise to 7.76 million tonnes in 2012 from 7.33 million tonnes last year.
Prices of the benchmark three-month contract on the London Metal Exchange have risen more than 10 percent so far this year, trading at $8,537 per tonne at 0726 GMT on Monday.
Li, also the chairman of the parent of listed Jiangxi Copper, said the parent plans to produce 1.2 million tonnes of copper this year.
In 2011, the parent expected its copper production above 1 million tonnes, including listed Jiangxi Copper's 940,000 tonnes.
The parent operates another 120,000 tonnes of copper capacity, 100,000 tonnes of lead capacity and 100,000 tonnes of zinc capacity.
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