Copper Worldwide Vol 10 No 2 NEWS AND SPOTLIGHT

4 | NEWS In brief…

China’s Yunnan province has announced that it will set aside 1 bn yuan (US$ 141 M) to assist businesses in stockpiling 800 kt of nonferrous metals. The scheme is part of Yunnan province’s efforts to boost its economy following the COVID-19 pandemic, with stockpiling a strategy to ease pressure on smelters hit by sliding metal prices. www.roskill.com

China’s National Bureau of Statistics said refined copper output fell 2.5% year-on-year in March to 771,000 tonnes, the lowest monthly total since May 2019 due to coronavirus-related disruption. On a daily basis, output averaged at around 24,870 t/d in the month, according to Reuters calculations, down from 25,450 t/d in January and February combined. www.reuters.com

The World Bank launched a working draft Sustainability Checklist on 14 April, with the aim of refining it in the subsequent months. It can be accessed in the ‘Sustainability blog’ area of the website. The short term (6-18 months) section covers Impact on Employment and Economic Activity, and Timeliness and Risk in relation to actions and measures. www.antaike.com

The next meeting of the GDMB Copper Expert Committee will take place from 21 - 23 October 2020 by friendly invitation of Montanwerke Brixlegg AG. Send the title of the paper and a short abstract for Presentations, which will take place on 22 October followed by a plant visit on 23 October. Hotel bookings are to be made by 9 September. www.gdmb.de

CNMC Chifeng Fubang Copper Co., Ltd. in Inner Mongolia expects to expand its copper smelting capacity to 100 kt.

It has a copper smelting capacity of 50,000 t, and plans to start upgrading projects in 2020 to increase the capacity to 100,000 tonnes, which will be completed and put into operation in 2021. www.antaike.com

China Daye Nonferrous Metals Mining Limited produced a total of approximately 28,700 tonnes of mined copper in 2019, a decrease of approximately 4.33% over the previous year. The company produced approximately 505,000 tonnes of copper cathode, an increase of 0.92% y-o-y, and 896.30 t of precious metals. www.antaike.com

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CDA defines essential copper role The U.S. Copper Development Association issued a notice on 23 March on the usefulness of copper alloys in the battle against coronavirus. The notice asked that local, state and federal governments ensure that copper industry operations and employees are designated as ‘essential’ and not included in any ‘shelter in place’ or similar orders.

Copper alloys are needed to produce oxygen regulators for medical applications and hospitals as well as machined components for other medical equipment including ventilators.

A recent study conducted by the N ationa l In s titute s of Health and the Centers for Disease Control and Prevention and published in the New England Journal of Medicine repor ted that the SARS CoV-2 virus, which causes the disease COVID-19, remained viable for up to 2 to 3 days on plastic and stainless steel surfaces versus only 4 hours on copper. Earlier research also reported that copper alloy surfaces rapidly inactivated a similar strain of coronavirus. www.copper.org

IWCC echoes vital nature of copper sector A similar Position Paper was issued by the IWCC at the start of April, noting that copper is essential to the economy, needed for the generation and distribution of electricity to homes, shops and industry, for example. The copper processing industry is a low-risk workplace for the spread of COVID-19. The copper semis industry has highly efficient manufacturing processes and relatively low numbers of production workers are employed

in the workplace. Therefore, existing working practices in semis plants means that social distancing is easily implemented and enforced in the workplace. Copper plants should continue to operate during the COVID-19 pandemic to ensure essential services continue uninterrupted. Ports, borders and other transport infrastructure should be kept open for essential industrial deliveries, including copper products.

Peru battles against coronavirus impact World No. 2 copper producer Peru had reported over 116,000 cases of coronavirus, the second-highest tally in Latin America, leaving millions without jobs. The central bank said the economy had been severely affected temporarily. The Peruvian Government has extended its declaration of a National Emergency until 30 June. Prime Minister Vicente Zeballos said the lockdown would continue with flexibility. Peru’s government has announced a massive economic stimulus package worth 90 billion soles (US$ 26.41 billion), around 12% of gross domestic product, to support citizens and the key mining sector. www.reuters.com

Cerro Verde update from FCX

Freeport-McMoRan’s Cerro Verde Mine is conducting limited operations in accordance with the government quarantine order and is completing actions to provide additional onsite facilities and enhanced health protocols to enable production to increase while maintaining www.coppercouncil.org compliance. From 1-23 April 2020, Cerro Verde’s concentrator operated approximately one-third of planned Smelting capacity curbs advocated by Chinalco atrates.

Freeport-McMoRan owns Structural contradictions in China’s million tonnes per year in 2019, 53.56% of Cerro Verde, which copper smelting sector have while investment in the sector produced 1.0 billion pounds of copper intensified overcapacity woes, grew 40.9%. Production of refined and 29 Mlb of molybdenum in 2019. according to Yu Dehui, Chinalco’s copper for the year was 9.78 Mt, www.fcx.com General Manager and member of the pointing to a capacity utilisation National Committee of the Chinese rate of just 77%, according to Los Pelambres People’s Political Consultative Yu. The capacity is expected to Conference, who spoke to China expand to 14.22 Mt per year in Expansion on C&M Nonferrous Metals News on 22 2021, widening the gap. China’s Antofagasta Minerals SA suspended May. Overcapacity has heightened copper concentrate self-sufficiency the Los Pelambres Expansion project, reliance on foreign ore and boosted rate has now fallen to 22.8% in referred to in Chile as the INCO environmental pressure.

2019, from a level of 43.25% in project, on 2 April. The action will Blind expansion of copper smelting 2000. Yu also mentioned sulphuric be periodically reviewed and will capacity in China should now be acid overcapacity woes, which in principle apply for an estimated strictly curbed to facilitate high- sparked the risks of storage maximum period of 120 days. In quality development of the copper filling up amid the ongoing COVID- most cases this does not imply the contract will be terminated. “This industry. China’s domestic refined 19 outbreak. is a temporary suspension as it is copper capacity reached 12.59 www.metal.com not possible to continue with the construction of the project as originally WBMS reports surplus in first three months planned and is only for the duration of The copper market recorded a surplus in the consumption calculation for the emergency,” explained Francisco of 188 kt in January to March 2020 unreported stock changes, particularly Walther, Vice President of Projects which follows a deficit of 268 kt in the in the Chinese government stockpile. at Antofagasta Minerals. The decision whole of 2019. Reported stocks rose World mine production in the makes it possible to strengthen during January, February and March quarter was up 8 per cent to general hygiene and social isolation to close 316 kt higher than at the end 5.24 Mt year-on-year. Global measures, thus protecting the health of December 2019. This increase refined production for January to of both workers and communities. includes net deliveries of 76.5 kt into March 2020 rose 8.1 % to 5.93 Antofagasta said it wants to maintain the LME warehouses and Comex Mt comparatively, with significant a contractual relationship with stocks dropped by 9 kt. Shanghai increases recorded in China (up 243 most of the contractor companies stocks rose by 240 kt during January kt) and in Chile (up 61 kt). after the emergency. www.antofagasta.co.uk and March. No allowance is made www.world-bureau.com Copper Worldwide Vol 10 No 2

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KCC delays acid plant commissioning

Smelter declares force majeure Guangxi Nanguo Copper Smelter, with production capacity of 300,000 tonnes per year, was the first in China to declare force majeure on deliveries of copper concentrate (on 7 February) following the coronavirus epidemic. Low demand for sulphuric acid due to factory closures including those in Hubei meant copper smelters reduced

production by more than 15% in February from the previous month, Chinese research house Antaike said. Nanguo was on maintenance in January and decided to ask for deliveries to be suspended due to the virus, a lack of manpower and transportation problems. Guangxi Nanguo only started up its smelter in 2019.

Progress towards commissioning of a sulphuric acid, sulphur dioxide production and steam turbine generator project at Kamoto Copper Company (KCC) in DR Congo by Katanga Mining has been delayed as a result of the inability to mobilise necessary commissioning experts to site due to travel and social distancing restrictions imposed as a www.reuters.com result of the COVID-19 pandemic.

The acid plant is now expected to be commissioned in the second Notes regarding the force majeure issue half of 2020, rather than in the first Use of force majeure notices in the event must be the only one half of 2020. this crisis will likely lead to many affecting contractual performance www.katangamining.com potential disputes over who must (unless clearly stated otherwise). bear the losses. A force majeure In other words, but for coronavirus, clause usually requires performance a party must have been willing and ICSG copper prices of contractual obligations to be able to perform. and stock movements prevented, impeded, hindered It is critically important that you According to ICSG data for January or delayed. Prevent requires understand why you cannot supply 2020 issued on 24 April, based on that the obstacle to perform is and that you document and collect the average of estimates provided insurmountable, for example that the evidence of those reasons. If you by independent consultants, China’s it is no longer physically possible receive a force majeure declaration bonded stocks are thought to have or legally permissible to perform from your supplier, ask for details increased by about 60,000 t in January the contract. Impede, hinder and about how exactly the supplier is 2020 compared to the year-end 2019 delay can be construed more affected by Covid-19 (and document level. Bonded stocks increased by broadly and do not require the those details) before responding. around 22,000 t in January 2019. As affected party to prove impossibility www.hoganlovells.com of the end of March 2020, copper to perform. To rely on the clause, www.cips.org stocks held at the major metal exchanges (LME, COMEX, SHFE) Coronavirus stalls global trade totalled 615,040 t, an increase of 312,653 t (103%) from stocks held The Covid-19 pandemic has exposed developed. The pandemic has shown at the end of December 2019. the lack of risk management, resilience it needs to be substantially reworked Stocks were up at the LME (+53%) and agility in supply chains. Recent and rebuilt. Applying diverse sourcing and SHFE (+194%) and down at analysis in Supply Management, the strategies and spreading the risk, COMEX (-13%). official publication of The Chartered avoiding single-source or region The average LME cash price for Institute of Procurement & Supply dependence, is a key lesson from March 2020 was US$ 5,178.68 /t, (CIPS) in the UK, offers some the pandemic. This basically entails down 9% from the February average guidance on solutions. In April more decentralisation, regionalisation of US$ 5,686.45 /t. The 2020 high 2020, Paul Simpson observed how and localisation, as well as onshoring. and low copper prices through the fragile our cost-driven, just-in-time As this crisis shows, it would pay end of March were US$ 6,300.50 /t processes are. After the 2007-8 companies to look at the really big (on 16th January) and US$ 4,617.50 /t economic crises, a global supply things that don’t happen very often (on 23 March), respectively, and the chain that is interconnected, intricate and run scenarios for those. year average was US$ 5,636.60 /t and sometimes unfathomable has www.cips.org (6% below the 2019 annual average). www.icsg.org

The Chinese metals market in April

Four countries receive duty bill from India

The Executive Summary of Antaike’s Copper & Copper Fabrication Monthly No.280 distributed on 10 May said that in April, domestic refined copper production increased slightly on a month-on-month basis, and downstream demand gradually returned to normal. Orders of copper semis enterprises were significantly improved, so the surplus of refined copper was narrowed.

Zijin (Huichun), Yunnan Tin, Yuguang Gold & Lead, and ZTS Nonferrous Metals Co., Ltd. had maintenance plans, which affected copper cathode.

In addition, the epidemic in South America and Africa spread severely in Mid-late March. Major copper

India has imposed countervailing duties on imports from Indonesia, Malaysia, Thailand and Vietnam ranging from 2.47% to 10.27% for five years. An earlier investigation by the Directorate General of Trade Remedies showed that copper wire imported from the above four countries was exported to India at subsidised prices, hurting domestic companies. DGTR also proposed a countervailing duty on imports of continuous casting copper wires from the above four countries. www.antaike.com

resource countries in the world adopted strict blockade measures, which led to the tight supply of copper concentrate. Turnover days of copper concentrate in domestic smelters and inventory in ports generally declined, affecting production of some enterprises.

The shipping schedule means more negative impact on domestic smelting production is expected in May. However, the sales difficulty of sulphuric acid and the overstock of refined copper has been better alleviated, and domestic copper cathode production showed a small increase in April. www.antaike.com

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In brief…

The latest Savant Global Copper Smelting Index has shown less activity in March but signs of recovery in China towards the month end. The index, which uses satellite data to monitor up to 90 per cent of global copper smelting capacity, put the March average at 86.7, down from February’s 91.5 level. www.mining-journal.com

Sustainable Energy for All (SEforALL) is an international organisation working with leaders in government, the private sector and civil society to drive toward achievement of Sustainable Development Goal 7 (SDG7), which calls for universal access to sustainable energy by 2030, and the Paris Agreement to limit climate warming to below 2° Celsius. www.seforall.org

Asia and Europe are the first and second largest destination of China’s copper semis exports. Exports to Asia and Europe accounted for 68.5% (17% in Japan and South Korea) and 15% of the total in 2019 respectively. Among them, the main products exported to Europe are copper and copper alloy tubes and tube fittings. www.antaike.com

Polycab India (PIL) has signed an agreement with Trafigura, Singapore, to acquire its 50% JV stake in Ryker Base Pvt Ltd in Gujarat, making Ryker a wholly owned subsidiary of PIL. Ryker is involved in manufacturing of copper wire rods with a total annual capacity of 225,000 tpy and commenced its commercial production in FY20. www.business-standard.com

COMET (the Coalition on Materials Emissions Transparency) is an alliance between MIT’s Sustainable Supply Chains initiative, the Columbia Center for Sustainable Investment, Rocky Mountain Institute, and the Colorado School of Mines. It aims to create a universal greenhouse gas (GHG) calculation framework for the mineral and industrial supply chains. www.rmi.org

IWCC Chairman, Dr Erwin Mayr, was recently interviewed by Cu2 Consulting on the copper industry, the impact of COVID-19 and the work of the IWCC. The interview between Cu2 Consulting and the IWCC Chairman was published on 20 April 2020 in the monthly report Copper Fabricators Competitive Monitor (CFCM). www.cu2consulting.com

6 | SPOTLIGHT – COVID-19

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Pandemic affects 2020 copper usage forecast The latest ICSG Insight into the ‘Global Impact of COVID-19 Related Lockdowns on Industrial Uses of Copper and Recycling’ released in May says the first half of 2020 will be remembered by a strong deterioration in the downstream demand for copper.

Copper semis

Global GDP is expected to contract 3% after a forecast of growth over 3% in January by Intergovernmental organisations. The impact on copper demand only in Q1 2020 is revealed in the fall in use of copper wire rod, which represented 56% of all copper end uses worldwide in 2019.

In Q1 2020 the Asia Pacific region was the most affected, with a 25% fall in sales of wire and cable. In the European Region and MENA, sales fell 6% in Q1, but Q2 expectations are pointing to a 2 digit annual contraction. In North America the first quarter was good with wire rod demand up 4%, but expectations were not so good for Q2.

In Latin America demand fell 15% in Q1 via commodity price adjustments.

China’s automobile production fell 45% y-o-y in Q1 2020, whilst electric grid investment fell 27%, air conditioner output fell 28%, and refrigerator output fell 20% respectively. In the period 1-10 May 2020, South Korean exports fell 46% y-o-y, and imports fell 37%. Japanese

imports of scrap fell 36%, and less fabricated copper products were exported in Malaysia, Russia and Spain in the first quarter. There was a contraction of 29% in Italian industrial production in Q1, followed by France (-16%), Germany (-14%) and Spain (-13%), with European copper use expected to fall in Q2 2020.

Exports of fabricated copper and alloys fell in Q1 in Belgium, Poland and Germany. In the US, housing starts fell 9% in Q1 and in Q2 the fall might be in 2 digits, whilst household spending in transport fell 33% in Q1.

Other streams

Copper smelters out of mining countries are facing a massive shortage of concentrates in H1 2020. That eventually can be solved in part if concentrate stocks in South America are exported. Total y-o-y Q1 exports of copper concentrates fell from Chile (-8%), Peru (-10%), from Australia (-8%) and Brazil (-16%). Ports in Peru closed all of April, and not all mines operated at low capacity for stocks.

Global trade of copper scrap fell 400 kt in Q1, but scrap availability fell 550 kt as lower prices hit smelter and fabricator demand. Traders of recycled copper, scrap and copper waste left the market when prices fell. Imports of copper scrap to China fell by 37% in Q1 on ports closures,

with Germany’s imports down 16%, and a 36% fall in Japan and Malaysia.

Refined copper output produced from concentrates is sustaining the supply of refined copper in H1 2020. It will be difficult for global copper use to return to the 29.9 Mt reported in 2019. Preliminary estimates for the drop in 2020 global end use of copper are between -1,4 Mt and -2.7 Mt in the less optimistic scenario.

Upstream

The ICSG Secretariat Briefing Paper - No 18 (Insight) was released on 21 May entitled ‘The Impact of the COVID-19 Pandemic on World Copper Supply’. The April meetings of the ICSG were cancelled, so the spring forecast was deferred. The Insight is an update on the copper supply and demand impact and on ICSG’s last forecast made in October 2019. In summary, global mine production in 2020 is likely to be about 950,000 tonnes copper lower than the ICSG forecast in October 2019. World output is now expected to decline by about 3% compared to 2019. Global refined output will be approximately 1.1 Mt lower than the Group forecast in October. Consequently, world refined production is now expected to remain unchanged for the second consecutive year. www.icsg.org

Covid-19 impact webinars from CRU CRU Events published a series of pandemic webinars, aimed primarily at would-be World Copper Conference 2021 attendees, from April to early May. Chief Economist Jumana Saleheen delivered ‘Global pandemic triggers global recession’ on 6 April, then Principal Analyst Erik Heimlich presented on ‘Developments in copper supply’ on 23 April, before Director of Copper Research and Strategy Vanessa Davidson concluded with ‘Copper market outlook’ on 7 May: Jumana’s global macro-economic forecast observed that, as one third of the world’s population were put in lockdown in March, a sharp fall in demand and supply chain disruption ensued. Whilst China’s PMI has bounced back rapidly, China will not see demand in Q2 from the rest of the world (RoW). The US should see positive growth

by Q4 of 2020, but the EU is forecast to take longer still to recover.

The pandemic has halted a 126-month record US economic expansion, after around 33 states issued ‘shelter-in-place’ orders in March. A -0.2% change in GDP is forecast for 2020. The Eurozone was already vulnerable, and a -5.2% GDP contribution is forecast for Q2. In global automotive production, 2020 will see a 10 per cent fall, in a third year of decline. However (from 3rd Webinar), global copper demand from EV’s will rise from 417 kt in 2020 to 1.1 Mt

in 2025, and 2.5 Mt in 2030. Around 75% of this copper is in the vehicles.

Erik’s presentation calculated a 22.2% fall in Chinese refined copper consumption in Q1, whilst the RoW is forecast to see an 11.9% fall in Q2. The supply of copper scrap has declined as prices have fallen, increasing demand for primary copper. As Covid-19 has limited scrap recycling rates (from 3rd Webinar), and imports are blocked, a 20 per cent fall in Chinese scrap use in refined production and semis is forecast this year (RoW 11%).

Mining has allowed to continue in most lockdown countries except Mexico. Peru imposed an early lockdown, but this has impeded mining activity. As at 5 May (from 3rd Webinar), around 333 kt impact from mine disruptions, notably in Peru (c. 105 kt), had occurred since mid-March, and around 190 kt impact on smelter output, mainly due to the effect of smelter acid storage and shipping restrictions. Whilst countries like Australia, Kazakhstan and Mongolia had suffered only minor disruptions in the period, the estimated global production losses due to Covid-19 will add 3-4.5% of extra mine output disruptions in all of 2020, representing 600 kt in total. Project developments being put in stand-by will affect future supply.

Vanessa’s webinar described the havoc caused

by Covid-19. The typical seasonal pattern

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whereby stocks are accumulated in the first few months of the year and then destocked is holding. Chinese cathode import premiums have already recovered to exceed 2019 levels.

RoW refined copper demand is set to fall by 5.5% in 2020. Chinese demand fell by 22.2% in the first quarter, leading to an estimated annual 5% drop in 2020.

Global refined copper consumption for 2020 is now thought to be 22 Mt, a 1.8 Mt reduction from CRU’s January estimates.

Demand to 2025 will be lowered enough by the after effects of the pandemic to remove the possibility of supply deficits in the mid2020s. India is forecast to achieve robust consumption growth of at least 10% per annum from 2021 to 2024, whilst ASEAN will see 4% annual growth in the period.

Chinese smelters remain vulnerable to mine closures in other parts of the world, as mining majors are reducing 2020 capex and ongoing projects are being delayed.

Around 159 kt of price-related cutbacks to mine output have also been announced as at 5 May, and more are expected in H2, rising to an overall 340 - 445 kt level. A 5% reduction in global mine output is expected for 2020, and a 3% reduction in refined production (China -2.5%). There is a 700 kt drop to the 2024 output forecast. Whilst an 850 kt surplus of cathode is forecast for 2020, prices are likely to remain around US$ 5,000 per tonne. www.events.crugroup.com

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Metallo acquired by Aurubis Group With the formal closing of the transaction on 29 May, Metallo is being fully consolidated into the Aurubis Group as of 1 June 2020 for a purchase price of EUR 380 million. The acquisition represents an important step in the implementation of Aurubis’ multimetal strategy and toward its goal to become one of the most efficient and sustainable smelter networks in the world.

The EU competition authorities issued their unconditional approval of the acquisition on 4 May. The name Metallo, an established name on the recycling market, will be retained.

With the Metallo acquisition, the

The Metallo site in Beerse, Belgium.

Aurubis Group is gaining another company in Belgium (Beerse with about 450 employees) in addition to Olen, as well as a company in Spain for the first time (Berango in the province of Biscay with about 90 employees).

Roland Harings, Aurubis AG E xe c u t i ve B o a rd C h a i r m a n , explained: “We will integrate the Metallo production sites to form an optimised production network of our plants. This will lead to more than 1 million tonnes of recycling capacity for secondary material.”

Dirk Vandenberghe, CEO and Director of Metallo, added: “Metallo specialises in processing recycling materials with low metal contents, with a focus on tin, lead, nickel, zinc, and copper. We have a ‘zero waste’ approach - even as the compositions of the input materials become increasingly complex. As

Latest ICSG market data released According to ICSG data for February 2020 issued on 25 May, world mine production increased by about 2% in the first two months of 2020, with concentrate production increasing by 1% and solvent extractionelectrowinning (SX-EW) increasing by 5.8%. Mine production in Chile increased by 4%, recovering from production constraints in early 2019.

Chilean SX-EW output increased by 8%. Production in Peru declined by 4% mainly due to operational issues and adverse weather affecting few major mines.

In the Democratic Republic of Congo (DRC), production increased by 5% as production from ramp-up mines more than offset temporary closure of a major mine in December 2019. Official data indicates that Chinese copper mine production declined by 12% mainly due to temporary suspension of some mines related to COVID-19 restrictions.

In Indonesia, production grew by 14% as output levels are improving from the transition of the country’s major two copper mines to different ore zones in 2019. Production in Panama was higher as the country only started producing copper in March 2019.

Preliminary data indicates that world refined copper production increased by about 0.6% in the

Roland Harings (left) is CEO of Aurubis AG Dirk Vandenberghe is CEO of Metallo

part of Aurubis, we want to continue processing all of the input materials into valuable products, making an important sustainability contribution as one company.” www.aurubis.com

JCCL latest

first two months of 2020 with primary production (electrolytic and electrowinning) up by 2% and secondary production (from scrap) down by 6%. Chilean electrolytic refined output increased by a significant 30% as in the comparative month of 2019 production was negatively affected by temporary smelter shutdowns whilst undergoing upgrades to comply with new environmental regulations. Total Chilean refined production (including EW) increased by 14.5%.

Chinese refined production was negatively impacted by temporary shutdowns related to COVID-19 restrictions, tight scrap supply and acid market constraints. In Africa, production in the DRC was up 5% but production in Zambia declined by about 20% due to operational issues and temporary shutdowns. Japanese refined production increased by 7% mainly recovering from maintenance in the same period of 2019.

Preliminary data indicates that world apparent refined copper usage declined by about 2% in the first two months of 2020. Chinese apparent usage declined by 4% mainly as a consequence of lower Chinese refinery output as net refined copper imports increased by 9%. Real Chinese industrial usage was negatively impacted by COVID-

19 related production suspensions at semis fabricators. Among other major copper users, refined usage declined by 2% in Japan and remained essentially unchanged in the EU and in the United States. The preliminary world refined copper balance in the first two months of 2020 indicates 130,000 t surplus.

In developing its global market balance, ICSG uses an apparent demand calculation for China that does not take into account changes in unreported stocks. The Refined World Balance Adjusted for Chinese Bonded Stock Changes, based on an average estimate of changes in unreported inventories provided by three consultants with expertise in China’s copper market, indicated a market surplus of about 220,000 t.

As of the end of April, copper stocks held at the major metal exchanges (LME, COMEX, SHFE) totalled 549,261 t, an increase of 246,874 t (82%) from stocks held at the end of December 2019.

Stocks were up at the LME (+74%), SHFE (+109%) and COMEX (14%) respectively. The ICSG Copper Bulletin is available for sale (annual s ub sc r ip tio n EU R 550 / EU R 850 for orders originating from/ outside institutions based in ICSG member countries).

According to the Q1 2020 Report issued by Jiangxi Copper Co., Ltd. (JCCL), the quarterly operating revenue was 56.21 bn yuan and increased by 15.04% y-o-y.

The Group’s main production and operation goal is to produce 1.65 mt of copper cathode, 77 tonnes of gold, 1,025 t of silver, 4.788 Mt of sulphuric acid, 207,500 t of copper in concentrates, and 1.63 Mt of copper rods/wires, etc.

During the reporting period, Ph a s e I I of t h e n ew l y b u il t 350,000 tpy copper rod project of Jiangxi Copper (Guangzhou) C o p p e r P ro d u c t s C o m p a ny Limited has been successfully put into operation. The construction of the 220,000 tpy copper rod production line project of Jiangxi Copper North China (Tianjin) Copper Co., Ltd has started, a nd the indu s tr i a l l ayou t of the company in the Bohai Rim region has fur ther improved.

The construction of the pha se III 15,0 0 0 tonne s per year lithium-electric copper foil production line of the Jiangxi JCC Yates Copper Foil Company Limited has initiated, by which the company has taken a new step into the high-end copper processing products field.

www.icsg.org

www.antaike.com

demand might increase by 4.4% to 23.625 Mt. In the EU-28, demand for refined copper in 2019 was 2.967 Mt, down 8% compared with 2018.

A further decrease of 6.4% is now forecast for 2020 for this region.

However, in 2021, demand might increase by 5.4% to 2.927 Mt. For China, in 2019 the IWCC estimates reported (or real) demand for refined

copper up 2.8% to 12.209 Mt. For 2020, the forecasts currently suggest reported demand of refined copper in China might decrease by 2.8% to 11.87 Mt. For 2021, reported demand is expected to increase to 12.175 Mt. Present economic uncertainty means these forecasts have wider tolerances than usual.

IWCC short-term forecasts for copper Amid the COVID-19 pandemic’s economic disruption, the International Wrought Copper Council (IWCC) has completed its regular six-monthly review of the copper market and has finalised its forecasts (see also IWCC item on Page 4). Using publicly available information and ICSG input, the supply side data shows that refined copper production in 2019 was 23.47

Mt. For 2020, it is forecast to be 22.91 Mt and might be 24.30 Mt in 2021.

The demand side forecasts were prepared by the IWCC. Global reported refined copper demand in 2019 was 23.915 million tonnes, up 25 kt on that for 2018. For 2020 the forecasts suggest that refined copper demand might be 22.625 Mt, a decrease of 5.4%. For 2021,

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