2017 is a good year for copper from the perspective of icsg
Metals News: The International Copper Metal Study Group, in its latest report, said this red metal had the highest growth potential in 2017 due to growing consumption of electric cars this year.
Production halts in some of the world’s largest mines and the growth of electric car production, which has increased global demand for base metals including aluminum, copper and nickel, has made copper a base metal this year,for this reason Most likely to be affected by Promissory note in the market.
In this regard, Carlos Rhysopatron, director of the International Copper Studies Group at the Department of Economics and Environment, said that the most important factor in the rise in copper prices was production interruptions. Especially in Indonesia, Africa and Latin America. The biggest production disruptions were labor disputes at Ferry Port McMurran’s Grossberg mine in Indonesia and BHP’s Scundidae mine in Chile. “As a result of multiple production interruptions, global production of inorganic copper jumped from about 20 million to 300,000 tons in 2016 and 19 million and 800,000 tons this year.”
As a result of such supply shortages, copper prices rose as much as $ 7,717 a tonne in mid-October. The price of copper was $ 5,554 a tonne earlier this year. Copper prices fell to $ 6,768 a tonne in mid-November, despite some mineral capacities gradually returning to production and increased market investment. As copper demand was on the rise, such price adjustments were predictable in November from market participants. It is worth noting that a 4% increase in global demand for refined copper is mainly attributable to China’s construction, power and transportation industries, as China consumes about half of the world’s copper.
From the rhizopatron’s point of view, the second factor driving the rise in copper prices is the exploitation of the copper market by the growth of electric car production worldwide. According to Rizopatron’s observations, nearly 200,000 tonnes of copper alloy is currently used in the manufacture of electric cars, and this figure will grow steadily by 2020 as many countries seek to implement regulations to replace domestic combustion vehicles with electric cars. . Although China’s copper demand rose nearly 6 percent in 2017, it is expected to drop to 3 percent in 2018.
It should be noted that production interruptions this year are not expected to happen next year, so the copper market is likely to move from equilibrium to surplus supply in 2018. However, the lack of adequate investment in the mining sector and the gradual decline in the average grade of copper in the world’s mines make the supply deficit likely to persist until 2020.