Boliden AB Forecasts Strong Demand for Copper and Zinc

Strategic Insights -

Swedish miner Boliden AB anticipates substantial long-term demand growth for its copper and zinc business, driven by a shortage of zinc concentrates and robust forecasted demand for copper. According to Boliden's fourth-quarter earnings conference call, the zinc concentrate market is unlikely to meet growing demand over the next decade due to a lack of new mine developments and limited exploration activity. This shortage is expected to result in concentrate supply deficits, with a projected demand growth rate of 3% expected to lead to a deficit by 2010.

Key Takeaways:

  • Boliden AB forecasts strong long-term demand for copper and zinc due to a shortage of concentrates.
  • The zinc concentrate market is unlikely to meet growing demand over the next decade due to a lack of new mine developments and limited exploration activity.
  • Boliden anticipates concentrate supply deficits, with a projected demand growth rate of 3% expected to lead to a deficit by 2010.
  • UBS forecasts zinc demand growth between 3.6% and 5.6% until 2008 in its latest quarterly metals outlook.
  • Boliden's long-term projection for copper concentrate supply suggests that probable production expansions will not be sufficient to keep up with demand from 2009.
  • UBS predicts copper demand growth between 5.8% and 4.5% from 2006 to 2008.

Statistics:

  • Boliden expects a concentrate supply deficit by 2010 at a 3% demand growth rate.
  • UBS forecasts zinc demand growth between 3.6% and 5.6% until 2008.
  • Boliden anticipates robust demand growth for copper, with UBS predicting a 5.8% increase from 2006 to 2008.

Sources:

  • Dow Jones Commodities News via Comtext, Feb 06, 2006
  • Boliden's fourth-quarter earnings conference call, 2006
  • UBS Quarterly Metals Outlook, 2006
  • Elisabeth Behrmann, Dow Jones Newswires, Feb 06, 2006