SHANGHAI, Mar 29 (SMM) – Copper prices are likely to be rangebound at a relatively high level in 2018 as supplies of copper concentrate tighten, Jiangxi Copper said in its earnings report on Thursday March 28.
The growth in global copper concentrate output is set to slow down in the next two to three years as the last round of copper mine investment comes to an end. Consumption, meanwhile, will be buoyed by the stable growth in China’s power grid, home appliances and auto industries. A limited supply of imported copper scrap would also give support to demand.
However, copper prices also face pressure from high inventories and tighter monetary policies. Slower investment growth in China’s property and infrastructure sectors will also limit the economic development and suppress copper prices, the report noted.
In 2017, Jiangxi Copper registered revenue of 205 billion yuan and profits of 1.6 billion yuan, up 1.4% and 105% year on year respectively, according to the report.
The company produced 209,600 mt copper equivalent of copper concentrate last year, flat from the year before. Production of copper cathode production amounted to 1.37 million mt, up 160,000 mt from 2016. Ooutput of other copper products stood at 1.14 million mt last year, up 190,000 mt from a year ago.
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