To read this content please select one of the options below:

Copper prices will edge higher due to labour disputes

Tuesday, April 25, 2017

Subject

The outlook for copper prices.

Significance

Having seen prices halve over five years, the copper market has stabilised since the fourth quarter of 2016. The long bear market forced the industry to cut exploration and capital reserves, and demand rebounded in 2016, growing by 1.8%. This year the market has started to tighten as there have been supply disruptions.

Impacts

  • Chile’s output could rise in coming years as the government will inject 975 million dollars to bolster state-owned Codelco’s growth.
  • In six years, Rio Tinto and Chinalco found no copper in China and have stopped looking, so China will remain the world’s largest importer.
  • Chile’s miners, reliant on costly coal and gas, are reviewing bids from wind and solar power producers, which may dramatically cut costs.
  • To increase its stake in two Congolese mines, Glencore spent more than 500 million dollars to buy out Israeli financier Dan Gertler.

Related articles

Expert Briefings logo
Stay up to date
Sign up to the Expert Daily Briefings email alert and receive up-to-the-minute analysis of global events as they happen.
*If your university does not have access to Expert Briefings, visit our information page to find out more.