Tension rife in copper mining industry due to price sways and failure to meet demand |
Posted: October 21, 2014 |
Mumbai, India – October 20, 2014 - As per the copper mining industry market research, the overall production of copper was 18.1 million tons, which was 8.4% more than 2012,withChile, China and Peru recording the highest productions. As per the market reports, despite the tension regarding its production and price sways, the copper mining market is expected to grow at a CAGR of 3.9% over the period of 2014-2020, with countries like Peru and Zambia are poised to play important roles.
This report, Global Copper Mining to 2020, covers historical data and forecast on global copper mine production and consumption till 2020, the copper reserve of various countries, and trade. The report also includes drivers and restraints affecting the global copper mining industry, profiles of major copper mining companies, and information on the major active, exploration, and development projects by region.
Tension builds up in global copper industry Owing to all these regional issues, and impact of various associated markets, the global copper market will be in a deficit for the fifth straight year, before it will finally switch towards surplus production of 390,000 tons in the upcoming year. This failure to meet demand this year will be due to varied operational failures which will be combined with delays in the start up of new mines. It was only in April that market experts predicted that production would outpace demand by 400,000 tons as demand would lag output. The increased output was to be accounted from Asia and Africa.
However, tension has been rife in the copper mining industry since the middle of 2013.So far the net result has generally been a stalemate and prices have swayed sideways, mostly in the USD 6900 to 7150/t range. Market experts witnessed progressively lower stock prices on the exchanges and merchant bond, making the immediate physical market very tight. Furthermore, there was also the concern of impending surplus with sharp increase in supply and deep doubts about consumption prospects. On the other hand, in the demand front of China, the copper market was spooked in mid-August by a very poor load data. Additionally, the ongoing retraction of China’s construction sector, where copper is installed in the later cycle, is bound to impact the market. Along with this, there was also a sharp fall in China’s purchasing managers index (PMI) late in August. This was further accompanied by stalled recovery of the market in Europe and US despite the strong PMI figures.
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