The decline in the value of copper theft seen in 2012 has continued into 2013, with R9.9-million worth of the element stolen in April, from R10-million in March and R11.2-million in February, the South African Chamber of Commerce and Industry (Sacci) stated on Thursday.
According to Sacci’s latest monthly Copper Theft Barometer, this resulted in a contraction of the monthly average for the year to date to $10.5-million, compared to the 2012 monthly average of $19.8-million.
However, while the value of copper stolen decreased in April, the estimated volume picked up slightly owing to a weakening of the copper price.
The Copper Theft Volume Indicator increased to 150 t in April from 142 t in March, linked to the 5% monthly decrease in the copper price in April.
This came as the international spot price of copper stabilised at a monthly average of $7 229/t to date in May, from $7 208/t in April. The May figure was 8.5% lower than a year before.
Sacci said that, while commodity price trends remained volatile, it saw significant upward potential for copper, based on the average price levels of just below $8 000/t achieved by the metal in 2012.
In the year to date, this average had dropped to around $7 600/t.
Meanwhile, copper waste exports increased to $36.8-million in February from $35.1-million in January, a slight increase that was still below the 2012 year-end peak of $43-million in November and 15% less than a year before.
“These increased exports were most likely a market response to the strong price of copper in the beginning of the year, which averaged at $8 061/t in January and February. The converse is that exports may dip because of the deterioration in the price,” said Sacci, adding that the weakening of the rand dollar exchange rate to around R9.20 in May would ensure that local exporters derived more revenue from trades.
The report noted that the outlook for copper remained positive for the medium-to-long term as a result of the strong relationship between the incidence level of copper theft and the international copper price, which continued to fall.