Demand for copper strong amid supply nightmare: Oxiana
16th April 2008, 9:15 WST
Oxiana managing director Owen Hegarty says demand for copper is very strong as the price of the red metal nears record highs.
“Demand for copper is a perfect storm,” Mr Hegarty told analysts in a conference call.
“Strong demand (is) coming from China, all the fundamentals on the demand side are outstanding.”
Continuing disruptions, including power issues in Chile, the world’s largest producer of the metal, and strikes have put pressure on supply, pushing up the price.
“Supply for copper is almost a perfect nightmare,” Mr Hegarty said.
Copper on the London Metal Exchange averaged $US3.53 per pound in three months to March 31, a 31 per cent increase on the previous corresponding quarter.
Oxiana produced record copper output from its Sepon mine in Laos and its Golden Grove operation in Western Australia during the quarter.
AAP
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