Perth, Australia — 26 March 2012 – New mine projects will begin to impact the rate of international copper supply growth from 2013, with annual rates of increase running in excess of 4% per annum.
Revealing this in its BME Copper Quarterly Report “’ released on the eve of the 2012 Australian Copper Conference in Brisbane on 27 and 28 March “’ Intierra Resource Intelligence points out, however that, given an expected modest revival in consumption growth and a reduced contribution from scrap, the supply-driven slide into surplus will be gradual rather than dramatic.
Intierra suggests that while expected to reach larger surpluses in 2015 and 2016, the refined copper market will remain close to balance through 2012 and 2013.
Referring specifically to the outlook for prices, Intierra director base metals Paul Dewison stated: “With the physical market for copper remaining quite tight through 2012 and 2013, prices are forecast to remain within sight of US$8,000/t.
As the impending surplus becomes more evident late in 2013 and into 2014, prices should reduce to around US$6,000/t in 2016,” he added.
Intierra commercial director Greg Kay will reveal more insights from the BME Copper Quarterly Report when he presents “Copper – the exploration activity and project pipeline””’ at the conference later this week. The conference, which brings together leading sector players with an audience of industry experts and retail investors, will examine the future of the global copper market.
Source: Intierra Resource Intelligence. For further details click here.