Page 41 from: January / February 2016

39January/February 2016

the search for feedstock, some copper
processors have reportedly resorted to
using cathode.
In its mid-December results statement
covering the 2014/15 fiscal period,
leading copper recycler Aurubis antici-
pates a good supply of concentrates

as well as high treatment and refining
charges in 2016 – but ‘there are weak-
nesses in the copper scrap markets’, it
adds. ‘Lower metal prices cause scrap
traders to reduce their collection activity
and retain material, which is reflected
in supply shortages and lower refining

charges in the copper scrap market.’
Along with sulfuric acid, ‘improvement
on these very volatile markets isn’t
detectable at the moment’.
Group operating earnings before
taxes soared from Euro 137 million
in 2013/14 to Euro 343 million in the
2014/15 fiscal year even though rev-
enues fell Euro 246 million to just short
of Euro 11 billion, largely as a result
of lower sales of copper products. Sig-
nificantly higher treatment and refin-
ing charges for copper concentrate and
scrap were said to be key contributors
to these ‘very good’ results.
In the latter weeks of 2015, it was
confirmed that some of China’s lead-
ing copper smelters had agreed to trim
their production this year in a bid to
support the ailing red metal market.
However, doubt has been cast on the
likely effectiveness or even the enforce-
ability of this undertaking. Meanwhile,
there was an 8% decline in US copper
scrap deliveries to China in the first 10
months of 2015, according to Census
Bureau statistics. The total of 560 408
tonnes compared to 606 585 tonnes in
January-October 2014.
The refined copper market recorded a

surplus of 35 000 tonnes in the opening
three quarters of 2015 – aided by an
increase of 4.5% in secondary produc-
tion from scrap, the International Cop-
per Study Group (ICSG) has revealed.
Primary refined copper production
edged 1% higher to 13.826 mil-
lion tonnes while the secondary total
advanced from 2.884 million tonnes in
January-September 2014 to 3.019 mil-
lion tonnes in the first nine months of
2015. On a regional basis, total refined
output is estimated to have increased
by 7% in Africa and 3.5% in Asia
while remaining unchanged in Europe.
Decreases of 2% and 17% were
recorded in, respectively, the Americas
and Oceania.
Meanwhile, world apparent usage is
estimated to have declined by around
1.5% from 17.064 million tonnes in
January-September 2014 to 16.81 mil-
lion tonnes in the first nine months of
2015, notes the ICSG. Excluding China,
world usage declined by around 3.5%.
On a regional basis, usage is estimated
to have remained essentially unchanged
in Asia while increasing by around 3%
in Africa and 1.5% in the Americas and
declining by 10% in Europe.
Taking all these figures into account,
the refined copper market registered
a production surplus of around 35 000
tonnes in January-September 2015
compared with a deficit of 452 000
tonnes for the same period in 2014. The
world refinery capacity utilisation rate
for the first nine months of 2015 was
around 82%, slightly below the 82.5%
for the same period in 2014.

Lead
Scrap prices have been tracking lower.
In Germany, for example, soft lead scrap
(Paket) has brought in US$ 1493 per
tonne while old lead scrap has been
traded at US$ 1539 in the Netherlands.
Demand in the lead market has been
lacklustre, with producers ordering sig-
nificantly less than in the same period
last year.
According to the International Lead
& Zinc Study Group, global supply
of refined lead exceeded demand by
22 000 tonnes in the first 10 months of
2015 compared with a surplus of 6000
tonnes in the corresponding period of

Non-Ferrous