Aurubis CEO Expects US Copper Demand to Lower Stockpiles
Aurubis CEO Toralf Haag expects strong US demand to reduce Comex copper stockpiles. The company will finish its Georgia recycling plant by the end of September.
The Chief Executive of AURUBIS AG expects a significant reduction in the massive Copper stockpile currently held on the U.S. Comex exchange as domestic consumption intensifies. Speaking at the World Copper Conference in Santiago, Toralf Haag noted that while inventories reached near-record levels earlier this year, the outlook for local demand remains robust.
Currently, Comex warehouses in the United States hold approximately 532,000 metric tons of the metal, representing nearly a quarter of the nation's annual consumption. These levels surged last year as traders preemptively moved supplies to avoid potential tariffs. Although inventories peaked at 546,000 tons in February and have remained elevated, Haag anticipates a shift in the coming months.
But in my opinion, the stocks will decrease over the next months through strong local demand.
Haag highlighted that the current inventory levels are largely a matter of supply security. While he declined to provide specific targets for where stockpiles might sit by the end of 2026, the company is moving forward with its own industrial expansion. Aurubis is on track to complete the second phase of its recycling plant in Richmond, Georgia, by late September, which will add 90,000 tons of annual capacity. A final decision on further U.S. investments, including a potential primary copper smelter, is expected by the end of 2026.
The broader market landscape remains mixed. While the company has noted a slight downturn in demand due to the conflict involving Iran and ongoing struggles within the automotive sector in Germany, other sectors are providing a necessary buffer. Growth in power infrastructure and construction is helping to offset these losses, while the rapid expansion of global digital infrastructure is emerging as a critical driver.
Haag estimated that approximately 1,000 new data centers planned worldwide will each require between 20,000 and 30,000 tons of copper. Beyond the metal itself, Aurubis is experiencing increased demand for sulphuric acid, a byproduct of its smelting operations in Hamburg and Bulgaria. Global shortages have led to a surge in inquiries, though the company’s reliance on long-term contracts limits its ability to capitalize on immediate spot price fluctuations.
We are getting enquiries from all around the world and also from players we havent done business with before.
