LME WEEK 2019: Freeport believes copper fundamentals are “very positive”

LONDON, Oct 30 (SMM) – The fundamentals for the copper market are “very positive in the short-, mid- and long-term,” said Javier Targhetta, head of sales for copper-mining giant Freeport-McMoRan.

In an interview during the metals industry’s annual gathering in London this week, Targhetta argued that new supply constraints and an upbeat demand outlook painted a bright picture for copper’s prospects.

His views were echoed by SMM Singapore’s general manager Ian Roper, who said at SMM Metals Seminar during the LME Week that copper fundamentals look very supportive as supply remained tight on the raw materials front and refined inventory also stood at lows through the chain.

Worries about sagging demand fueled by the US-China trade war have kept copper prices in check, which will “jump in a vivid way,” when the trade uncertainties fade, Targhetta added.

He said that copper mine supply is “already constrained”, and Freeport will push for a further reduction in the processing fees it pays smelters to reflect that tightness.

SMM assessed treatment charges for spot, imported copper concentrate at $59.83/mt as of October 25.

On the demand side, Targhetta saw plenty of driving factors including renewable energy, electrified transport and urbanisation projects.

Freeport estimates that the mining industry will need to find an additional 100-million mt of copper over the next two decades to feed rising consumption.