World demand for copper to reach 36 million metric tons in 2019

Global demand for copper metal (produced from refined copper and recycled scrap) is projected to advance 4.2 percent per year through 2019 to 36.0 million metric tons, valued at $261 billion, according to “World Copper,” a new study from The Freedonia Group Inc., a Cleveland-based industry research firm.

Robust gains in building construction expenditures are expected to boost the use of copper wire, tube, and other mill products in applications such as building wire and plumbing. Increased infrastructure investment, particularly in developing countries, will further benefit copper suppliers as updates to national power grids drive the production of wire and cable. In addition, advances in global manufacturing output are expected to bolster the use of copper metal in transportation equipment, industrial machinery, domestic appliances, and other durable goods. Nevertheless, competition from alternative materials, such as plastic pipe in plumbing applications, will restrain faster overall growth.

“China drives the global copper metal market, accounting for more than two-fifths of world demand in 2014,” said analyst Carolyn Zulandt. “The country’s massive building construction and electrical and electronic sectors consume huge volumes of copper.” Strong domestic output of motor vehicles, industrial machinery, and household appliances further boosts copper demand in China.

India is forecast to register the fastest gains of any major copper metal market through 2019. Robust increases in domestic building construction activity, driven in part by an expanding urban population and government investment, will underpin gains in local copper consumption. Advances in construction spending also are projected to fuel copper demand in North America, particularly in the U.S., where building construction activity will significantly accelerate from the pace of the 2009-2014 period. More moderate increases in copper metal demand are forecast for Western Europe, where construction and manufacturing output will climb at rates below the global average.