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04

2022

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11

The world's largest copper producer's net profit plummeted 50%, troubled copper, where is spring?

Codelco, the world's largest copper producer, released an unsatisfactory performance report due to falling copper prices and falling production in some copper mines. In the first three quarters of this year, Codelco copper production was 1.06 million tons, down 10% from the same period last year, and pre-tax profit fell to $2.606 billion, down 50.4 per cent from a year earlier.

Trapped by the fall in copper prices and the decline in production in some copper mines,World's Largest Copper Producer CodelcoAn unsatisfactory performance report was issued. in the first three quarters of this year,Codelco copper output was 1.06 million tons, down 10% from the same period last year,Pretax profit falls to $2.606 billion, year-on-year plunge50.4%.

 

 

Copper prices have continued to come under pressure in recent months as a strong dollar and market fears of a global recession have intensified. Copper prices are currently Around $7400, down about 30 per cent from a record high of $10000 a tonne in early March.

 

2 022 The year was a year of deep adjustment of copper prices. At the beginning of the year, it was still high. In the middle of the year, it took a sharp turn for the bottom. The roller coaster market made people trance. Is copper really not working?

 

Alive in the past, may be the harvest is not the same scenery.

 

According to S & P Global (S&P Global) A recent report predicts that by mid-century, global annual demand for copper will reach 53 million tons , is the current global mine production (approx.2 190 10,000 tons) more than twice.

 

Compared with traditional energy systems, renewable energy systems require higher Copper , an average electric car uses about four times as much copper as a regular car, and wind farms need 400-15 million pounds of copper, while solar photovoltaic farms require 9000 pounds of copper per megawatt of electricity produced .

 

Given that there is no substitute for copper in electric vehicles, wind and solar energy, the world will not be able to achieve a smooth transition from fossil fuels to green energy without copper.

 

 
The conundrum now is whether the world will have enough copper to meet future demand. ?

 

The copper mining process will be affected by force majeure such as bad weather, strikes, community road blockages, and technical failures, resulting in lower than expected copper production. This year is good."Testify". First of all, Minmetals Resources is located in Peru. Las Bambas copper mine be around Community obstruction It is located in the Congo. Nambulwa leased mine occupied by armed men...

 

This year, some of the world's largest copper miners have cut annual production expectations, BHP Billiton (BHP), Rio Tinto (Rio Tinto), Anglo American (Anglo), First Quantum Mining (First Quantum Minerals) and Glencore (Glencore) all cut production estimates. .

 

Commodity Research Corporation CRU expects that without new capital investment, there will be more than 200 copper mines by 2035. Mining exhausted . With the increase in mining costs, the future increment of existing mines will be limited.

 

 
In terms of new copper mines, the discovery and development of new deposits is becoming increasingly tricky and expensive, It is becoming increasingly difficult and time-consuming to get new projects approved. In the past few years, the capital expenditure of copper mines has been insufficient, and the number of new copper mines in the long term has decreased significantly.

 

in terms of investment and projects, 2022-2025 is a big year for the release of global copper mines, then slowing down year by year, Fitch expects, From 2022 to 2031, global mine copper production will grow at an average annual rate of 3.2 per cent. In terms of the state of progress of new mine projects, after 2023 very basic hard to see To Annual output over300000 tons of large mines, mostly small and medium-sized mines.

 

 
According to Fitch Solutions ( Fitch Solutions) The country risk and industrial research team predicts that due to the commissioning of some projects in Chile, China and the Democratic Republic of the Congo, by 2031. , Global copper production to increase7.3 million tons This is far from the growth in copper demand.

 

In addition, scrap copper will also play a greater role in meeting future demand. Research agency Wood Mackenzie (Wood Mackenzie) estimates in a new report that,More than 1/3 of the consumption comes from secondary recycling,This contribution is likely to be greater as the recovery rate increases.But in the near term, it does not address the overall supply challenge.

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