Copper giant Codelco plans India push |
World`s largest copper producer, Chile`s state mining company Codelco, is targeting to quadruple its sales in Southeast Asia by 2023. India is a big part of the plan as Codelco also attempts to reduce a strong reliance on sales to China. The firm will open a new office in Singapore in August 2021, to help lead the push around the region to deal with clients in Vietnam, Malaysia and Thailand, among others, and to lead the drive into India. The push by the world`s top producer of the red metal comes with global copper prices elevated amid recovering demand worldwide and expectations that long-term shifts towards electric vehicles will drive future need for the metal. Codelco expects that these markets should have the highest growth in copper consumption over the next 20 years. Codelco Vice President Carlos Alvarado in a statement said that Southeast Asia and India represent about 8% of refined copper consumption globally, and this percentage is expected to exceed 20% in 2040. China is the main buyer of Chilean copper and the top client for Codelco, which has a key office in Shanghai. The Chilean company anticipates India`s demand will rise significantly. On the other hand, China will reduce its dependence on importing refined copper, because it will have a greater smelting capacity to produce it. Codelco currently sells in India - concentrate of copper, blister and molybdenum. To enter the copper cathode market for batteries, talks were expected towards bilateral agreements to eliminate imports tariffs of up to 5%. Codelco says its commercial strategy is to strengthen leadership in copper supply to the United States, establish long-term alliances with end customers in Europe and Asia, and reduce dependence on China, increasing participation in the emerging markets of South-East Asia and India.
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