The company expects a surplus of as much as 400,000 tonnes this year, Diego Hernandez said in an interview with Metal Bulletin for the annual Cesco industry week in Chile. A surplus much higher than this, however, might be a different story.
“If the accumulated copper market surplus is around or below 400,000 tonnes, it certainly can be absorbed in China. But if the surplus is twice that then it won’t be easily absorbed by the Chinese economy,” he said. “But I don't think we will see a surplus reach that kind of level.”
The strong mine performance of 2013, which saw companies beat expectations and operate with far fewer disruptions than usual, is unlikely to become the norm, Hernandez said.
“If all projects arrive on time, we could have a surplus of 400,000 tonnes but it is...