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The cost of copper has gone up

10 March 2016

On the London Metal Exchange, an increase in the cost of copper. In any case, the 3-month prices rose to the top mark. In accordance with the report of the exchange for the three months the cost of metal has reached 4856 USD / ton. From the first days of November last year, is the best indicator. Why is the price of copper has shown such good results? The reason was a set of hopes for global economic growth and a lower US dollar exchange rate. To minimize, observed since January 2016, 12% of the value added. At the same time, analysts are in no hurry to show great optimism about further increases in metal prices.

Commerzbank analysts are skeptical about the possibility of the subsequent growth. For such a trend should be observed signs of improvement in the global economy. The risks fall in the value of copper to China play a major role. Perhaps a further slowdown of the Chinese economy. In this case the action and the whole metal sector will further pressurized. Growth from PRC consumption fell almost 2%. At the same time for the previous few years, he was a little more than 5%. Chinese companies are consuming nearly 50% of global demand for copper.

Some experts are quite optimistic with respect to measures taken to stimulate the Chinese economy. Hence the sharp increase in the cost of copper and other base metals. World market expects that Chinese policymakers will lift the national economy.

At the same time representatives of Codelco talk about global copper surplus. They will fall to 2016−2017 year. According to the latest report of the value of the metal will remain unstable. It is expected that it will be 2−2,10 USD / lb. As for the red metal deficit, then presumably it will be in 2018−2019 years. The deficit will amount to about 50 000 — 100 thousand tons (in 2018). In 2019 the metal shortage will reach the mark of 300 000 and 400 000 tonnes. In 2015, there was an excess of copper was 146 000 tonnes. Regarding indicators of 2014 it increased by 25.8%. These data were provided by World Bureau of Metals Statistics. In 2015, the production of copper raw materials in terms of pure copper has increased by 4.3%. Volumes amounted to 19,280,000. Tons. Development of refined metal increased by 0.7%, which amounted to 23,080,000. Tons. Consumption thus showing an increase of 0.5%, reaching 22,931,000. Tons.

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