Coronavirus Impacts Had a Firm Grip on Copper Sector

SEATTLE (Scrap Monster): Germany-headquartered world’s largest copper recycler, Aurubis, noted that the impact of the deadly coronavirus has had a firm grip on global copper market. The observation was made public, in a recent letter by the company addressed to customers.

According to Aurubis, the effects of the virus epidemic tend to cause huge concerns among economists around the world. The Organization for Economic Cooperation and Development (OECD) had recently announced that the global economy is likely to shrink further in the event of no significant improvement in current conditions.

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The outbreak of the epidemic in China has impacted copper production in China, especially during the month of February this year. As per estimates, a good portion of the copper processing industry in China are reportedly operating at reduced rate of anywhere between 60% and 90%. The spread of the virus to other countries has had an impact on copper prices as well, Aurubis said.

Meantime, the finished copper inventories have surged higher significantly by more than 50% from the levels of 366,000 metric tons at end-January to around 550,000 metric tons at the end of February this year.