Southern Copper 2018 forecast global copper demand by 2.1% supply will increase by 1%
February 6, 2018 Southern Copper pointed out in its 2017 annual results conference call that China's copper consumption, which is expected to account for over 45% of the global copper demand, will continue its healthy growth. It is estimated that global refined copper demand will increase by about 2.1% by 2018, and the growth of 2% of the demand will drive the incremental demand of 500,000 tons of copper ore. In the case of copper supplies, investors are expected to react poorly due to continued declines in investments by several companies in recent years. In addition, labor unrest, over-taxation of the government and technical difficulties further affected production. Due to these factors, Southern Copper is expected to increase its supply of copper by about 1% in 2018 and this year there will be a shortage of copper market, which will provide strong support for the price of copper.
In view of the current market outlook and our ongoing commitment to increase low-cost production, we believe that Southern Copper will continue to provide better results. The company's strong capital structure provides the financial and strategic flexibility needed to execute. South Copper is currently developing a new growth plan, is expected by 2025 will increase copper production to 1.5 million tons.