Wider World Copper Oversupply in 2009, Pan Pacific Copper

Japanese largest copper smelter, Pan Pacific Copper expects world copper market will be around 400,000 tonnes of oversupply in 2009 compared with 180,000 tonnes of surplus in 2008. The firm expects the oversupply expands due to lower consumption under worldwide slow economy. The oversupply condition could cap the copper ingot price.

The firm expects the world copper consumption will decrease by 1.7% to 18 million tonnes in 2009 from estimated 18.3 million tonnes in 2008. The firm estimates the Chinese consumption is 4.8 million tonnes as 2008 while the firm excludes the effect of Chinese economy package to stimulate the economy.

The firm expects the consumption will decrease in industrial countries including European countries, USA and Japan in 2009 from 2008. The firm expects the consumption will decrease in most of countries and areas while the firm expects the demand will increase slightly in Middle East.

The firm expects the copper supply will decrease by 0.5% t0 18.39 million tonnes in 2009 from estimated 18.48 million tonnes in 2008. The firm estimates world smelters reduce the output under plunging market price.