SHANGHAI, July 17 (SMM) – China will remain heavily reliant on imported copper concentrate in coming years, even as its domestic copper concentrate supply capacity will increase by 14% during 2020 to 2022 on the back of new mines commissioning and expansion projects, according to SMM’s vice president Racket Hu.
Source: SMM
Hu was speaking to delegates and online participants at the 15th China International Copper Industry Chain Conference/2nd China (Yingtan) Copper Industry Chain Summit in Shanghai yesterday. His keynote address covered the outlook of the global copper concentrate market post COVID-19, as well as global copper concentrate market supply and trend, and overseas copper mine investment.
Growing demand on continuous expansion of smelting capacity and weakening domestic mineral resources has driven China to become more reliant on imports of copper concentrate. Imports will remain the major source of copper concentrate for Chinese smelters, though the commissioning of a number of new mines and expansion projects is expected to lift domestic annual supply capacity over the next two years. New copper mine projects will be located in Tibet, Heilongjiang and Yunnan and Tibet, accounting for 68% of the output increase.
Copper mine production at global major miners declined 0.6% in Q1 2020, and the recovery in near-term output is limited. Mining companies including Freeport, Rio Tinto, Antofagasta and Vale have lowered their full-year production forecasts. The pandemic has also affected 333,500 mt of copper ore production across mines overseas, and the number is expected to exceed 450,000 mt in 2020.
Hu said that the pandemic crisis has also deterred global economic development and slowed construction of mine projects. Some mining companies have begun to reduce capital expenditures in response to falling revenues, which will affect copper ore supply in the medium-to-long run.
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