Copper theft has reached its lowest level since April 2009, a strong indication that the downward momentum seen last year will continue into 2013.
This is according to the South African Chamber of Commerce & Industry (SACCI)'s latest Copper Theft Barometer, which decreased to a level of R11.1 million in January, from R12.4 million in December.
SACCI says, 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.
"Improved policing is one such significant structural change that has the distinct potential to reduce the level of copper theft over time, regardless of the price trend."
Volume indicator
SACCI's Copper Theft Volume Indicator - released in May last year - recorded a level of 156 metric tons in January, from 179 tons in December and 180 tons in November.
The organisation says the new indicator provides a volume estimate of copper stolen that strips away the possible inflationary bias of high copper prices in a given month, and provides an estimate in terms of tons of copper stolen.
In economic terms, says SACCI, the Volume Indicator is a real indicator - where the standard Copper Theft Barometer is a nominal indicator of copper theft.
"The progress already made against copper theft in 2012 by way of improved police cooperation with social partners as well as the ground-breaking institutional work done with the Second-Hand Goods Act should spill over into 2013. The outlook is therefore very positive," concludes SACCI.
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