HAMBURG (Reuters) -A strong copper market with firm demand for copper products is expected to continue in 2024, the CEO of Aurubis AG, Europe's biggest copper producer, said on Wednesday.
Demand is expected from moves towards renewable energy, Roland Harings said during a press conference about the company’s full year results.
Aurubis on Wednesday confirmed a sharp 34% fall in annual earnings after a major metal theft, but remained upbeat for the new year.
Despite the disruption caused by the theft, Aurubis “remains on the ambitious course” it planned with a range of investment projects, Harings said.
Harings told Reuters after the press conference: "Because of the overall market environment, we are optimistic that 2024 will not be a bad year for us."
Higher demand is expected for copper products including wire rod. The continuing change towards renewable energy around Europe and digitalisation is expected to drive demand in the new year, he said.
A good supply of copper concentrate (ore) is expected because of new mining projects and mine expansion, he said.
New mining projects are opening especially in South America and Aurubis is developing long-term cooperation with them, he said.
Aurubis has the capability to refine complex ores and can achieve TC/RCs above the 2024 benchmark. The company is already supplied with concentrates at good TC/RCs well into the second quarter of its 2023/24 fiscal year.
The company also expects a stable supply of old metal for recycling.
Aurubis saw around 500 million euros wiped off its market value in September after announcing that criminals had stolen large volumes of its precious metal.
The forecast range of operating earnings before taxes (EBT) for 2022/23 of 380 to 480 million euros reflects uncertainty about sulphuric acid and metals prices, not the impact of the theft, he said.