China to become single largest consumer of base metals by 2017: Wood Mackenzie

China is on track to become the world?s single largest consumer of base metals by 2017 amid continued urbanization and rising domestic wealth, according to consultancy firm Wood Mackenzie?s latest base metals demand forecasts.

The forecast report obtained Saturday said that China will account for 52 percent of base metals demand by 2017, compared with 46 percent of the 96 million tons (Mt) global base metals market in 2013.

While China?s lower GDP targets are reflected in lower demand growth for base metals on a percentage basis over the next five years versus the last half decade, the research firm said that China will maintain its dominance and the outlook for Chinese base metals demand is slower not lower.

?Our forecasts for the next five years show that across all of the base metals ? aluminium, copper, lead, nickel and zinc ? growth in demand will come predominately from China. Demand growth has slowed from the double digits we saw from 2008 to 2013 to single digits - ranging from five to eight percent ? however, it?s important to note that in absolute tonnage terms we still see significant numbers,? said Helen Matthews, Head of Base Metals Markets research for Wood Mackenzie.

Wood Mackenzie said that the global base metals market is set to grow from 96Mt in 2013 to 122 Mt in 2018, with a huge shift set to occur in 2017; ?Today, the Rest of the World, excluding China, accounts for 54 percent of the global base metals market however, as we?re seeing with many other commodities, China?s rampant appetite will overtake the rest of the World, growing to 52 percent of demand in a 117Mt market.?

Wood Mackenzie?s economic analysis points to the drivers behind this growth as Jonathan Butcher, Senior Economist for Wood Mackenzie explains; ?While there are a number of factors behind growth in demand for each base metal, a key theme for China is continued urbanization and rising domestic wealth.? (*)