Supply and Demand, Technological Development, and Future Prospect of Copper in Asia

Consumption of refined copper in Asia, especially in China and India, has soared, and the copper price is at its historic height. New smelters and refineries have been built in the region with state-of-the-art technology to meet the unprecedented demands. Supply of copper concentrate, on the other hand, has fallen short of the growing demand for concentrate by the smelters and refineries with expanded production capacities. The shortage of copper concentrate is attributable to the delay in the mining development, caused by the prolonged price slump of before 2005. The mismatch between supply of concentrate and smelting and refining capacities may cause disorderly movement of copper price, and hamper the sound development of the industry. The recent high copper price may prompt substitution with alternate materials. With electrical and thermal conductivity and workability, copper is one of the most customer-friendly materials. It is regrettable for both customers and suppliers if the high copper price would become an impediment to promoting copper use. Some outdated and environmentally unfriendly facilities still operate. In view of recent lower-grade copper concentrate with higher sulfur content, these facilities must reform their equipment to environmental-responsive one. The current level of per capita consumption of refined copper in Asia shows that the demand of copper will further grow. It is necessary to realize stable supply of refined copper and stable copper price, to help developing countries including China and India to economically take off. Hence, it is essential that the development of the copper industry be accompanied by environmentally friendly facilities, and harmoniously increased capacities between mining and smelting and refining.