Forecast of the U.S. Copper Demand: a Framework Based on Scenario Analysis and Stock Dynamics

Abstract

In a world of finite metallic minerals, demand forecasting is crucial for managing the stocks and flows of these critical resources. Previous studies have projected copper supply and demand at the global level and the regional level of EU and China. However, no comprehensive study exists for the U.S., which has displayed unique copper consumption and dematerialization trends. In this study, we adapted the stock dynamics approach to forecast the U.S. copper in-use stock (IUS), consumption, and end-of-life (EOL) flows from 2016 to 2070 under various U.S.-specific scenarios. Assuming different socio-technological development trajectories, our model results are consistent with a stabilization range of 215-260 kg/person for the IUS. This is projected along with steady growth in the annual copper consumption and EOL copper generation driven mainly by the growing U.S. population. This stabilization trend of per capita IUS indicates that future copper consumption will largely recuperate IUS losses, allowing 34-39% of future demand to be met potentially by recycling 43% of domestic EOL copper. Despite the recent trends of "dematerialization", adaptive policies still need to be designed for enhancing the EOL recovery, especially in light of a potential transitioning to a "green technology" future with increased electrification dictating higher copper demand.

Keywords: U.S.; copper; demand; forecast; scenario.