Investor Presentaiton
Copper Market
Rising Supply and Uncertain Demand
Copper Price Evolution (USD/t)
Supply surpassed demand by some 1% in 2012, due to
new capacities and weaker physical demand
$11,000
$10,000
$9,000
Overall new capacities and ongoing projects may
$8,000
accelerate supply growth (2.3% increase in refined
$7,000
supply and a 3.6% growth in concentrate supply in
2012)
$6,000
$5,000
$4,000
$3,000
$2,000
Jan 07
Jan 08
Jan 09
Jan 10
Jan 11
Jan 12
—
As regards consumption growth, China remains
structurally the key driver, while:
IMF sees Chinese growth averaging 8.5% p/y in 2014-
2017
Rising government spending on infrastructure may
support consumption in economic hard landing
Overall consumption of copper may remain uncertain in
the short to medium term given economic uncertainties
in western and large emerging markets
In this context, a decrease in capacities surplus and
price tendency will depend on the resilience of demand
in weakened economies
Copper Consumption in 2012
Machinery
13%
Consumer
goods
9%
Electronics
34%
20.2 mt
Transport
13%
NORILSK NICKEL
Source:
Norilsk Nickel
Construction
31%
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