Global copper market to record surplus of 429,000 mt in 2015: Cochilco

BEIJING (Scrap Monster): The Chilean Copper Commission (Cochilco) predicts the global copper market surplus to grow in 2015. The Commission forecasts the surplus to total 125,000 mt in 2014, which is most likely to more than triple to 429,000 mt in 2015, as output grows from new facilities that are expected to come online in Chile, Peru, Mexico, the US and Zambia.

The rise in Chinese demand is expected to slow down during 2015, mainly on account of tight scrap market and less usage of copper by companies as collateral for bank loans. The Commission pegs the Chinese demand growth at 4.5%, when compared with the 9% growth this year. The country’s copper demand may account for 47% of the global demand. The demand is expected to touch 11.2 million mt in 2015.

The Commission in its quarterly market report maintains a relatively stable market for copper in 2015. It maintained its earlier price forecasts of $3.12/lb and $3/lb for 2014 and 2015 respectively.

Established in 1976, the Chilean Copper Commission (COCHILCO) is a specialized technical agency that advises the Chilean government on matters concerning the production of copper and copper byproducts and metals and industrial minerals mining, except coal and fuels.