Swapping aluminum for copper will maintain China’s resources, group says
China depends on overseas imports for 60% of its aluminum resources as opposed to 70% of its copper resources.
Aurubis AG, Europe’s largest copper producer, on Monday posted strong quarterly earnings and reiterated its annual outlook on expectations of high copper demand and prices as economies recover from the fallout of the covid-19 pandemic.
Aurubis posted operating earnings before taxes (operating EBT) of 185 million euros ($225 million) in the first quarter ended March 31, compared to 91 million euros from the previous year.
The copper producer confirmed its previous forecast of operating EBT of between 270 million and 330 million euros for the full 2020/21 fiscal year from Oct. 1, 2020.
“Aurubis continues to successfully make its way through the coronavirus crisis,” Chief Executive Officer Roland Harings said. “After one year of the pandemic, we can say that its impact on our result is still minor.”
Higher refining charges for scrap metal, increased concentrate (ore) throughput, strict cost discipline, high copper demand and a strong rise in metal prices are reasons behind the significantly higher quarterly results, the company said.
“Aurubis expects the pandemic’s impact to have very little effect on the rest of the fiscal year,” the company said, adding that with ongoing strong production levels at mines, it will be able to procure a sufficient supply of copper concentrates.
For copper scrap, the company expects a very good supply with a continued high level of refining charges.
“Due to expectations that the high prices of metals will continue, Aurubis anticipates a positive effect,” it said.
For copper products, it expects annual demand for copper wire rod and shapes “to substantially exceed” the prior year. It expects “strong demand” for flat-rolled products in both Europe and North America.
Aurubis said it still stands by its intention to sell its flat-rolled products business “and is in advanced contract negotiations”.
(By Michael Hogan; Editing by Riham Alkousaa and Sherry Jacob-Phillips)
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