Japan Mining Industry Expects Copper Supply Keeps Tight

Japan Mining Industry Association’s chairman Masanori Okada, who is president of Nippon Mining & Metals, said at regular press conference on Thursday copper supply would keep tight both in short and long term. He said the new development of mining side could delay while Chinese demand keeps growing.

Mr. Okada said copper demand in China is slowing from the peak when Chinese authority stopped the purchase for stockpile under narrower price gap between London Metal Exchange and Shanghai Futures Exchange. He indicates Chinese export apparently contributes to copper stock increase in South Korea and Singapore.

Mr. Okada said the domestic copper demand also started to recover. However, he said the smelters cannot increase the ingot production due to tight supply of scrap, which is cooling materials at the smelting along with tight ore supply.

Mr. Okada said world copper ore supply would increase only by annual 1-2% due to delay of new development plans. He expects the demand would increase by 3-4% per year mainly in China.