Copper Demand Scaled New Height Amid Trade Wars

The supply shortage of copper scrap has resulted in many companies switching to refined copper.

SEATTLE (Scrap Monster): The intense trade war between the U.S. and China has failed to dent the overall copper demand, said KGHM-the Polish state-owned copper producer. Speaking at LME Week in London, Marcin Chludzinski, chief executive of the company stated that copper demand has continued to remain strong despite the troubles caused by heated trade conflicts between the two countries.

The tighter purity norms by the Chinese administration coupled with the 25% import duty on U.S. scrap contributed to sharp decline in Chinese scrap metal imports including copper. As per Chinese Customs data, the imports dropped by nearly 30% from the previous year to total around 220,000 tonnes in August this year. The imports during the initial eight-month period of the year totaled 1.58 million tonnes, significantly down by 36% over the previous year.

The supply shortage of copper scrap has resulted in many companies switching to refined copper. Consequently, refined copper import volumes have witnessed tremendous jump during the year. The Chinese imports of refined and unwrought copper at 3.47 million tonnes, recorded 15% surge until August this year.

KGHM announced that the upgrade works at its Sierra Gorda processing plant is expected to get completed in 2021. Meantime, the yearly output is likely to record decline in 2018 over the previous year, mainly on account of maintenance shutdown at its Glogow II copper smelter. The anticipated smelter upgrades will boost the 2019 production, it added.

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