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CESCO INTERVIEW: Aurubis sees copper market

balanced in 2015 amid mixed scenario for demand
April 16, 2015 - 04:53 GMT Location: Santiago
KEYWORDS: Chile , Cesco 2015 , Aurubis , Copper , Stefan Boel
Aurubis expects the copper prices to be fairly stable in 2015, as supply disruptions offset slower demand from
China.
While there is currently enough metal available, there will be a tighter balance between supply and demand by
the end of the year, Aurubis’ board member for copper products Stefan Boel told Metal Bulletin during the Cesco
week in Santiago.

"We can say that 100,000 tonnes of surplus is not really a surplus, it’s very balanced," the executive said,
adding that the scenario could easily turn into one of a small deficit towards the end of the year.

Factors such as technical failures, government actions, and environmental issues are among the risks that
could lead to supply disruptions.

But a somewhat "mixed bag" in terms of demand could help offset eventual issues in production, according to
Boel.

"There might be less material coming into the market, but you have areas where you have good availability of
material," he said.

Chinese consumers have been very cautious recently, acquiring "really only what they need in the short term".

"There used to be longer positions, but that has now changed," Boel said.

In spite of the slowdown of Chinese investment in the real state sector, the need for refurbishment of existing
properties in the country could help to support demand for copper.

"It is one thing that has been overlooked," Boel said.

US demand has also been lower than the positive macroeconomic figures would suggest.

"US [demand] could be better," he said.

The German copper producer regards the European market, where demand for wires and cables has been
increasing,"with optimism".

Despite that, Boel said that in the overall picture, the industry "had been used to bigger growth".

The executive expects this scenario should keep copper prices either fairly stable or modestly increase in 2015

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CESCO INTERVIEW: Aurubis sees copper market balanced in 2015 ami... http://www.metalbulletin.com/Article/3445203/Search/CESCO-INTER...

from $6,000 to $6,500 per tonne.

"Nothing to be excited about," Boel said.

But weakness of the euro against the US dollar has been helping Aurubis offset the impact of the recent falls in
copper prices, he said.

"Our smelters have been well supplied all the time and will continue to be supplied," Boel told Metal Bulletin.

"Our view going forward is not negative. I don’t think we can complain," he added.

READ MORE: Aurubis will maintain focus on treating complex copper concentrates, ceo says

Danielle Assalve
danielle.assalve@metalbulletin.com
Twitter: @dassalve_MB

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