PPC Expects Global Cu Supply & Demand Balances in 2008

Pan Pacific Copper (PPC), Japanese largest copper smelter, forecasts global copper metal supply and demand would almost balance through 2008. The firm estimates the supply would become over by 37,000 tonnes against the demand through 2008 due to slower copper consumption impacted by US subprime loan problem and Chinese tighter financing, though PPC originally forecasted global copper supply becomes short. The firm expects the supply could become surplus by 300,000 tonnes against the demand through 2009 despite of the demand recovery.PPC estimates global copper metal consumption at 18.51 million tonnes per year in 2008, increasing by 1.8% year-on-year. Chinese consumption growth is expected to slow down to 3-4% in 2008 from 2-digit increase so far. Among advanced countries, US and Japanese consumptions are decreasing due to slower demand from construction markets. European consumption would become as much as 2007.Global copper production is estimated at 18.55 million tonnes through 2008, increasing by 2.4% from 2007. Producers are expanding output capacity of existent mines and starting operations of new mines when copper metal price stays high.PPC forecasts global demand for copper metal could increase by 3.5% to 19.16 million tonnes in 2009 from 2008. Chinese consumption might increase by 8% with an expectation the government would loose money market. US demand could recover as well. Global copper production could increase by 4.9% to 19.46 million tonnes concerning output troubles.