Bloomberg quoted Mr Wang Huajun deputy secretary-general of the China Nonferrous Metals Industry Association forecast that metal demand in China is expected not to grow beyond 10% in 2012.

At the same time, he said that non iron ore metal prices would also go down in the next 12 months.

China demand for metals will impact metal-producing nations such as Australia because China is the largest purchaser of copper and iron ore in the world and is the third largest buyer of alumina.

The slower Chinese demand has actually started in 2011 which placed pressure on metal prices and caused it to drop 23% this year at the London Metal Exchange LMEX Index, its first decline in price in three years.

(Sourced from Bloomberg)