According to ICSG It is expected that, 2017 The global growth rate of refined copper consumption this year is only... 1%，2018 The year will rise to 2.3% The growth rate of direct utilization of scrap copper is from 2016 Year 6%+ Rise to 2017 of the year 10% According to ICSG Statistics: Global Scrap Copper Utilization 2017 Annual increase to 800 Ten thousand tons, of which less than 300 Ten thousand tons represent indirect utilization, exceeding... 500 Ten thousand tons for direct utilization. Global copper ore production 2017 Year-on-year decline 2.7% ，2018 Annual production is expected to rebound and increase. 2.5% , the increase in magnitude is approximately 50 Ten thousand tons, 2019 Increased year-on-year 1.9% or 40 Ten thousand tons.

　　1. New mine investment and development

　　Miners say they are facing greater obstacles in developing new projects, which has led boards of directors to hesitate about signing off on capital expenditure plans at the board level and could exacerbate the mining deficit. Among them... Codelco The relevant parties stated that it would take at least... from establishing a large-scale project to putting it into operation. 10 In recent years, mining companies have become less responsive to growing demand than they were in the past, as current development projects increasingly need to focus on social relations and the availability of water resources. Obstacles to mine development could exacerbate the copper shortage, and the projected deficit in the copper concentrate market may intensify further.

　　Given that it takes a long time to generate cash flow, mining company boards are becoming more cautious when considering new large-scale projects. Some mining companies have already suffered losses from large-scale investments, further reinforcing investors’ reluctance to make similar investments. Chilean miners say that the main disruption this year is coming from the country itself. 34 Negotiations on the labor agreement, which include the workers who just voted to go on strike. Los Pelambres 。

　　2. Consumption and Electric Vehicles

　　A European manufacturer pointed out that the rise of protectionism by international governments could impact consumption—and if tariffs are imposed on steel and aluminum, copper will soon be next.

　　A senior executive from a certain company stated that higher copper prices will not affect the use of copper in electric vehicles, but demand for copper in electric vehicles is expected to be influenced by other metals. ( Including cobalt ) Due to supply constraints, cobalt is an essential component of battery technology. However, some representatives have expressed a different view, arguing that the current supply of cobalt will be sufficient to meet future needs. 2030 Reach approximately by the year 500 Ten thousand electric vehicles.

　　3. Chilean copper mine costs

　　2017 Year-on-year, strikes have driven up the unit cost of copper mining; other cost factors remain stable, resulting in cash costs. C3 From 2016 of the year 211 U.S. dollar / Pound rises to 219 U.S. dollar / Pound. Copper mines in other countries C3 From 2016 of the year 190 U.S. dollar / Pound falls to 188 U.S. dollar / Pound. Among the factors contributing most to the rise in Chile's copper mining costs is the unit labor cost. Labor, consumables, and services are also most affected by exchange rates, which respectively account for... 100%、30% And 70% Settle in local currency at the specified ratio.

　　4. Expected Large-Scale New Projects and Production Volumes

　　2024 This year, Chile's copper production is expected to decrease from... 2016 of the year 552 From ten thousand tons to 632 Ten thousand tons, increase 80 Ten thousand tons or 14% , with an average annual increase of approximately 10 Ten thousand tons / year. From a structural perspective, copper concentrate production will decrease from 2016 of the year 389 From ten thousand tons to 2021 of the year 461 Ten thousand tons, 2026 Reach the year 549 Ten thousand tons, but at the same time, wet-process copper production will decrease from... 2016 of the year 166 A drop of 10,000 tons to 2021 of the year 151 Ten thousand tons, 2026 year to 74 Ten thousand tons. Total copper production 2016 Year for 555 Ten thousand tons, 2021 The annual forecast is 612 Ten thousand tons, 2026 Year for 623 Ten thousand tons, with limited growth.

　　Chile's copper production forecast: 2018 Year for 576 Increased by 10,000 tons year-on-year 26 Ten thousand tons, including wet-process copper 157 Ten thousand tons, copper concentrate 419 Ten thousand tons. 2019 Annual copper production is approximately 593 10,000 tons, an increase year-on-year. 17 Ten thousand tons. 2018 Approximately annually 34 a labor contract, 2017 Year for 28 one, 2018 Contracts with higher annual interference rates involve a production capacity of approximately... 250 Ten thousand tons / Year, 2017 This year, the capacity involved in this category is approximately... 220 Ten thousand tons.

　　In terms of quantity, the decline in the grade of sulfide ores remains a challenge; considering the overall grade, 2018-2019 Annual grade is expected to remain relatively stable at 0.7% Nearby, and self- 2020 Starting this year, quality still faces the risk of decline; in the future... 2-5 The annual average grade will be from 0.66% Slip down to 0.6% Nearby. As the grade continues to decline, producing each unit of refined copper will require more raw ore and will also increase the volume of tailings that need to be processed.