Copper is recovering
USINE NOUVELLE - 5 January 2012
Following the reduced supply, the low level of demand for red metal will not be sufficient in stabilising the exchange rate.
Despite the significant fall in the second quarter, the beginning of the year has seen the price per tonne of copper reach a new record of 8,800 dollars. At the end of 2011, copper production was still suffering on three accounts: social conflicts (in Chilli, Peru and Indonesia), the weather, and the continuous reduction in the quality of the mineral.
Moreover, the weak demand in certain industrialised countries, such as in Europe and the USA, was not compensated over this period by China which was suffering some credit restrictions. A large sell-off of stock and an increase in recycling led to a limit in trade.
Perspectives for 2012-2013
With consumption still dragging its heels, notably in Europe, and a continued disappointing level of supply, the global copper market will remain somewhat stretched over the coming years. Once more, China will stand out with an increase in needs over 2 years of 14%.
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