Copper prices have risen dramatically this year, but smelters (which turn concentrate into metal) are experiencing depressed profits, says CRU International of London.
The consulting firm recently released two studies, Copper
Smelter and Refinery Costs, Profits and Plant Valuations and The 5-Year Outlook for Sulphuric Acid, both of which deal with the subject.
Surplus capacity has meant that many smelting companies are
operating at a loss, CRU says. Better treatment and refining charges should improve the prospects for copper smelters in the next two to three years.
However, CRU cautions that declines in the price of sulphuric acid, a byproduct, will place smelters under renewed pressure, even if copper prices stay high. Environmental legislation in industrialized countries is resulting in the capture of more sulphur; the sulphur is used to make sulphuric acid, the
abundance of which should bring the price down.
For more information, contact CRU International, 31 Mount
Pleasant, London WC1X 0AD, U.K.
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