China’s Impact on the Global Uranium and Copper Markets

Abstract

Abstract This chapter evaluates China’s impact on the global uranium and copper markets. China emerged as the number one importer of uranium in 2010, with 31 percent of world imports. In this case, given China’s favorable balance of market power, Chinese market stakeholders were less constrained in fulfilling procurement needs. In turn, global uranium market institutions have seen a high degree of continuity (accompanied by financialization), as China supported existing long-term pricing mechanisms. In the copper case, China emerged as the number one importer in 2008, with 28 percent of global imports. Here, both Chinese and global market stakeholders were in a more fragmented position, while the global market had already been financialized prior to China’s emergence. Here, China’s emergence, given its fragmented nature at the interface with the global market, initially pushed market institutions further in the direction of liberalization. Subsequently, Chinese stakeholders attempted to increase market coordination, with limited results.