Aurubis expects weaker copper demand in fiscal year forecast; operating earnings down 52%

German copper refiner Aurubis Group has forecast a continued weakening of the European copper market in its latest financial statement, indicating a significant dent to earnings as a result of subdued copper demand across the continent.

"Demand for flat rolled products, especially in the European automotive sector, has been declining since Autumn 2018. This is expected to continue for the rest of the fiscal year, [which runs from October 1, 2018 to June 30, 2019]," the company said in its half-year earnings. The three-month copper price on the London Metal Exchange fell by some 4% this month, slipping to $5,640 per tonne on August 5 - its lowest level since June 2017 - partly due to demand fears surrounding the trade dispute between China and the United States. Physical participants dealing in European copper cathodes continue to claim that the industry is stagnating, with some sources suggesting that a visible uptick in cathode demand is not possible throughout 2019. Additionally, the red metal’s sliding outright price has highlighted the production...

Published

Hassan Butt

August 08, 2019

17:00 GMT

London