Copper output to rise in 2022 as global economy recovers
07:08, 8 October 2021
Global copper mined production is forecast to increase by 3.9% in 2022 year-on-year as output from copper-producing nations, especially Peru, to recover to pre-pandemic levels.
The Lisbon-based International Copper Study Group forecast output of mined copper – used in construction materials, electronic wiring, and plumbing – to increase to 21.89 million tonnes next year, from 21.06 million tonnes in 2021.
“It will also be supported by the ramp-up of recently commissioned mines and expansions as well as the planned start-up of some large projects,” ICSG said.
New projects
Major projects starting in 2021/2022 include the Kamoa-Kakula Copper Project in the Democratic Republic of Congo (DRC) – a joint venture of Ivanhoe Mines, Zijin Mining Group, Crystal River Global Limited, and the DRC government.
Other projects are AngloAmerican’s Quellaveco mine in Peru; BHP’s Spence-SGO, Teck’s Quebrada Blanca QB2 in Chile, and Udokan Copper in Russia.
Production of refined copper is forecast to increase by 3.9% to 25.88 million tonnes in 2022, from 24.92 million tonnes this year.
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Demand recover
On the demand side, copper consumption is estimated to rise by 2.4% to 25.55 million tonnes next year, from 24.96 million tonnes this year on expected continued recovery in the world economy. Copper demand slowed to 0.1% in 2020 due to global lockdown to contain the spread of Covid-19.
“Sustained growth in copper demand is expected to resume as copper is essential to economic activity and the modern technological society,” ICSG said.
In a longer term, copper demand will get supports from infrastructure developments in major countries and the global trend towards cleaner energy and electric cars, it said, adding that it forecast a surplus of 328,000 tonnes in 2022.
Read more: Fitch Solutions revises up copper price forecast
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