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Trump Trade war - Aurubis copper business hit by trade war and Brexit

Metal News - Published on Mon, 15 Apr 2019

Image Source: ET Auto
Reuters reported that chief executive of Germany’s Aurubis AG said uncertainty caused by the US China trade war and Brexit had hit its copper products business but that long-term demand would be rescued by higher use in electric vehicles. The Hamburg-based company produces flat rolled products, cables and foils used in the automotive industry. Mr Juergen Schachler on the sidelines of the World Copper Conference in Santiago said that “People are hesitating in making purchases and are lowering their inventories with all the discussion around China and the US and the Brexit discussions creating more uncertainty.” He said that “We are seeing some slowing in demand which is related to automotive. We are seeing this in the last five to six months starting in the flat rolled business.”

Schachler, who steps down in June, said that despite the political uncertainty, the rest of Aurubis’ copper business was doing fine due to help from higher demand in the construction industry and that the rest of the company was performing well.

Aurubis is still positive on copper demand due to the expected rise in renewable energy and in electric vehicles, which use twice as much of the metal as internal combustion engines. Mr Schachler said that “I’m still optimistic about demand in the long term for copper and I don’t see any really big threat to optimism except for this China US situation.”

Global growth and metal demand have been hit by a long-standing trade conflict between China and the United States. New car sales in the across the European region are mostly trending lower also on political uncertainty over Brexit. In February, the European Commission blocked the sale of the flat rolled products business, which has annual sales of about EUR 1.3 billion, to Germany’s Wieland due to competition concerns.

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Posted By : Rabi Wangkhem on Mon, 15 Apr 2019
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