PCB007 Magazine

PCB007-Feb2019

Issue link: https://iconnect007.uberflip.com/i/1080843

Contents of this Issue

Navigation

Page 61 of 95

62 PCB007 MAGAZINE I FEBRUARY 2019 tation represent future significant sectors for increased copper demand. The automotive industry is already directly affecting these sec- tors. In most cases, electric vehicles require extensive upgrades of the local and central power distribution network (PDN) to allow users access to an efficient and fast charging apparatus. An estimated 85% of all copper mined is still in circulation because the re - source is highly recyclable. Unfortunately, this recyclable attribute is not properly addressed in many papers, which constitutes a challenge in regard to better estimating future supply and demand. Copper supply is estimated by Wood Mack- enzie to grow until approximately 2020 (Figure 2). Then, the demand will outstrip supply un- less the global market experiences increased turmoil as mentioned earlier. This leads us to draw the preliminary finding that the price of copper for the short term of 2019 will be sta- ble; for the medium term from 2020–2023, it will increase, and in the long term of 2035, the demand will grow with over 50%. It is impor- tant to state that it is a challenge to estimate the future demand for copper because copper estimates from ScienceDirect and Bloomberg differ from a yearly demand in 2025 from 35 to 24 million tons. Challenges for the Automotive Industry The automotive industry is experiencing a challenging setting as governments all over the world are placing a ban on the new sales of combustion engines. Over 15 countries repre- senting over 1.5 billion people have officially stated that the gasoline and diesel engine for new car sales will be banned. The country to first implement a ban on new car sales with gasoline or diesel is Costa Rica by 2021, and Figure 2: Mined copper supply gap and requirement for new capacity. Within three years, new supply will be required to match growing demand. (Source: Wood Mackenzie)

Articles in this issue

Archives of this issue

view archives of PCB007 Magazine - PCB007-Feb2019