Global copper market will be in surplus in 2015 - Cochilco

The Cochilco Copper Commission predicts further growth in the global copper surplus in the market in 2015. The Commission claims that in 2014 there will be a surplus of 125 thousand, which is likely to more than triple in 2015 and reach 429 thousand tons. This is due to new facilities and production growth seen in Chile, Peru, Mexico, the United States and Zambia.

At the same time, growth in demand from China is expected to continue to slow in 2015, mainly due to the use of the scrap market and a decrease in the volume of copper for companies as collateral for bank loans. The Commission expects Chinese demand to grow by 4.5 percent, up from 9 percent this year. Copper demand in the country accounts for 47 percent of global demand and plays a critical role in the industry. In 2015, copper demand is expected to reach 11.2 million tonnes.

The Commission in its quarterly report on the state of the copper market maintains its previous forecasts for prices of $ 3.12 /lb for 2014 and $ 3 /lb in 2015, assuming a relatively stable situation in the copper market next year.

The Chilean Copper Commission (Cochilco), founded in 1976, is a specialized technical agency advising the Chilean government on matters related to the production of copper and by-products, the industrial extraction of metals and minerals, excluding coal and fuels. Chile strives to become a leader in copper mining.