Maravi

Standard Bank predicts massive copper demand

Standard Bank predicts massive copper demand
By Kabanda Chulu in Kitwe
Mon 07 Feb. 2011, 04:01 CAT

COPPER mining companies will not meet global demand for 2011 and next year because it is growing faster than supply, says Standard Bank head of commodity research Walter de Wet. In an interview, de Wet said the copper market would be in deficit this year and next year.

“We estimate deficit to be 385,000 metric tonnes for 2011 and 465,000 for 2012, so clearly demand is growing faster than supply at this stage and mining companies will not meet this global demand,” de Wet said.

“Demand will remain strong until 2013 and after that we don’t see demand falling; it will be a case of supply start catching up with demand.”

When asked about copper benefits to Zambia and investor sentiments in view of the forthcoming general elections, de Wet said higher copper prices were an incentive to start new projects.

“And new projects means new jobs as well as revenue for government … speaking from a copper perspective people view Zambia as a source of new supply. No doubt and as long as copper price remain favourable and obviously economic conditions are favourable and we should see people investing in new mining projects,” de Wet said.

And making a presentation at the 2011 Stanbic Bank global micro-economic metals markets in Kitwe on Thursday, de Wet said the world should expect a tighter copper market in 2012.

He said China and other emerging markets were driving the increasing copper demand whose price was projected to stay at US$9,200 per metric tonne in 2011 and US$10,000 per metric tonne in 2012.

“Since 2008, China has been importing over 180,000 metric tonnes of copper per month and this is more than what some Zambian mines produce per year so this demand of course it being driven by China and other Asian and emerging markets and we are seeing the USA and other developed countries also coming on board and the construction,” said de Wet.

De Wet said consumer goods sectors were also huge consumers of the copper commodity.

Labels: COPPER, STANDARD BANK LONDON

posted by MrK @ 4:28 AM