Meeting the Challenge ? Prospect of the European Copper Industry

The copper demand is booming. New epicentres with strong dynamic economic growth have arisen in China and other emerging markets. Furthermore, Europe contributes to higher copper demand due to positive economic growth. China and India are therefore expanding their smelter industries, with the backing of a coordinated policy of global raw material sourcing, which includes investments in raw material deposits and state-run measures to support their international trade and competition. Likewise, Europe faces scarcity of copper raw materials. The copper industry in Europe is historically grown and shows excellence in environmental protection and technical leadership. Recycling has always been an important sector. This reiterates the recycling-know-how which exists in the European sector. However, Europe still relies on importing a considerable amount of raw materials from foreign countries. As a result, the global competition for copper and copper raw materials has increased. Tough competition as regards industrial location and costs, the emergence of corporate concentrations and the use of protectionist trading practices by countries like China and India, which distort the markets, now determine the picture. Hence, a copper smelter in Europe is forced to develop tailor-made concepts to safeguard and improve its international competitive position. It is imperative that this is also flanked by improved conditions on the local level and a European raw material policy which takes account of the changed situation on the world market.