Copper theft rises to R11.2 million

Copper theft increased to a level of R11.2 million in February, the SA Chamber of Commerce of Industry (Sacci) said.

According to the Sacci Copper Theft Barometer, copper theft stood at R11.1m in January.

Despite the recent slight increase, the downward momentum seen in copper theft in 2012 should continue into 2013, said Sacci CEO Neren Rau.

The Copper Theft Volume Indicator stood at a level of 156 metric tons in February from 179 tons in December and 180 tons in November.

Rau said the international spot price of copper decreased drastically to an average of US7711 (R71,403) per metric ton for the first two to three weeks of March, from US8062 (R74,654) in February 2013.

This was a contraction of 4.3 percent on a monthly basis and 8.9 percent lower than a year before.

"The primary assumption is that the consolidation of sovereign debt problems in developed economies should place upward pressure on the copper price this year," Sacci CEO Neren Rau.

"However, most commodities have seen high volatility over the past year, with Brent crude oil spiking at US118 (R1092.68) per barrel in mid February 2013, to settle at US109 (R1009.34) in mid-March."

He said copper was no exception to this volatile environment, influenced by high hopes for rapid global economic growth, and tempered by the occasional news of yet more sovereign debt crises.

"While there is a strong relationship between the incidence level of copper theft and the international copper price, this is a cyclical relationship that can be influenced by structural changes within the domestic environment."

Rau said improved policing was one such significant change that had the potential to reduce the level of copper theft over time, regardless of the price trend.

Copper waste exports decreased to US37.3m (R345.39m) in December 2012 from the end-year peak of US43m (R398.18m) in November.

"The outlook remains very positive despite the slight increase in the barometer in February," said Rau.