Copper market to remain surplus despite reduced production, says Barclays

Metal Recycling News  |  2013-06-17 05:02:15   |   By

The multinational banking and financial services company-Barclays has stated that despite reduced copper output this year, the year 2013 may still end up with considerable surplus

LONDON (Scrap Monster) : The multinational banking and financial services company-Barclays  has stated that despite reduced copper output this year, the year 2013 may still end up with considerable surplus.

Barclays had earlier during the year lowered the yearly copper output forecast from 870,000 mt to 490,000 mt. The recently released data by the International Copper Study Group (ICSG) showed that worldwide copper production during the initial two months period of the year recorded a growth of 12% year-on-year.

The lower estimates are based on the mine disruption, lower grades and shipment delays at various copper producing facilities around the world. Freeport-McMoRan Copper & Gold had declared force majeure earlier this week at its Indonesian Grasberg mines. The operations at the mines are being halted since May 15th. Recently, Jinchuan Group Co-China’s third largest copper producer announced closure of its plant having a yearly capacity of 200,000 tonne following acute shortage of raw scrap. In addition, lower grades of copper are being reported at Antamina, Cerro Verde and Toquepala mines in Peru.

Barclays points out that despite the lowered production forecasts, the year will see sizeable copper surplus. The bank however has scaled down the global copper surplus.