World Copper Supply to Get 200,000 tonnes Short in 2011, PPC

Japanese largest copper smelter, Pan Pacific Copper expects world copper market will be 200,000 tonnes of short supply in 2011. The firm expects the supply cannot cover growing demand especially in China while the supply increase is limited due to short ore supply. The firm now expects the copper supply is balanced for 2010 due to strong demand in Asia and limited availability of copper scrap while the firm expected 300,000 tonnes of oversupply originally.

The firm expects world copper supply increases by 3.8% to 19.2 million tonnes in 2011 from 2010. The firm expects Chinese copper demand increases by 7.7% to 7 million tonnes in 2010 from 2009 when the infrastructure investment will continue for power distribution and rail network. The firm expects the demand growth will be smaller at 5.7% in 2011 from 2010 but the demand reaches 7.4 million tonnes.

The firm expects world copper supply will increase by 2.7% to 19 million tonnes in 2011 from 2010. The firm expects Chinese copper output will increase by 9.8% to 4.5 million tonnes in 2010 from 2009 and by 11% to 5 million tonnes. However, limited ore availability could be neck for the higher production.

The firm expects the world copper supply and demand is balanced at 18.5 million tonnes in 2010. The firm expects the demand increases by 6.9% mainly in Asia from 2009 while the supply increase is only 0.9%. The supply growth is limited due to raw materials supply neck both for ore and scrap.