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In its first monthly decrease since February, the South African Chamber of Commerce and Industry’s (Sacci’s) Copper Theft Barometer level has contracted to R12.2-million in June from R15.4-million in May, coinciding with a drop in the volumes of copper stolen from 214 t in May to166 t in June.
However, Sacci warned on Wednesday that it was too early to determine whether the decline was a temporary dip in the recent upward trend, or possibly a positive indication of a downward trend reset.
This came as the international average monthly spot price of copper increased to $7 116/t in July from $6 824/t in June 2014 – the first time the monthly average had breached the “psychological” $7 000/t price barrier since February.
Meanwhile, South African exports of waste copper products increased slightly to $25.7-million in May from $24-million in April.
“Copper is widely used as an input in most manufactured goods and construction projects, so the uptick might be indicative of greater optimism regarding stronger global economic growth prospects,” the chamber noted.
Despite the marginal decline in recent copper theft, Sacci said it had emerged through discussions with the Sacci-affiliated business chamber in the Johannesburg township of Alexandra that scrap metal thefts had escalated to such an extent that various fittings to residential and business properties were being stolen.
“One possible explanation of the metal theft crime wave is the proximity of scrap metal dealers to the residential area,” Sacci pointed out.
The chamber added that the outlook for copper theft levels for 2014 remained concerning, despite the decrease in June.
“As noted previously, a dedicated national copper theft police unit can play an important role in prosecuting larger criminal syndicates,” it maintained.