Nonferrous Department

Working Through Supply

Demand for copper should regain momentum globally in 2002, but an overhang of supply is likely to keep a lid on prices.

Speaking to attendees of the Spotlight on Copper at the Institute of Scrap Recycling Industries Inc. (ISRI) Annual Convention in Las Vegas, Steven J. Butler of Asarco, Phoenix, was blunt in saying it is a difficult time to be in the copper industry.

Butler said there is an upside potential for copper, however, with the resurgence of the economies of eastern Europe as a hopeful factor. "I believe they’re about five years behind China in terms of [developing] a market," said Butler. "The infrastructure is there for those countries to experience tremendous growth."

He noted that a few years ago Chinese buyers would go in and out of the market quickly, much like Russian buyers today.

John E. Gross of J.E. Gross & Associates, Huntington, N.Y., predicted that copper consumption will be back on the rise this year, but that the increased demand will not lead to rapidly rising prices. "Copper consumption should rise, reflecting a stronger economy, but the bad news is there are still record high inventories," he remarked.