SHANGHAI, Jul. 25 (SMM) – Recently, some large copper miners expect copper ore supply deficit will give rising strength to copper prices. But will copper ore supply really be on the decline for the foreseeable future?
“Miners will be reluctant to cut production with fat profits, brought by rally in copper prices and low costs”, SMM copper analyst said. Average cash cost at global mainstream miners is $ 1.4027/lb or $ 3,100 per tonne, and is $ 3,500 per tonne if including smelting costs, based on data released by Bloomberg
Instead, global copper ore capacities will grow at a fast pace in the next few years, supported by commission of new and expansion capacities. The ICSG anticipated that copper ore capacities in the world will rise by 4.4 million tonnes or 20% from 2015 in 2019.
High spot TCs will also stimulate production by copper miners. SMM reckons that spot TCs will remain above $100 per tonne in the second half of 2016.
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