Copper demand growth next year will be much lower than the growth of production
Despite the fact that the daily research and development of metal deposits do not stop, experts predict that we can not exclude a situation where the supply and demand will be significantly different. According to the International Group for the Study of copper, it is this fate awaits the next year this metal.
Today, copper is considered a valuable metal and its price often vary quite considerably. Many businesses need it is there, because of their products includes a certain amount of copper. However, with the overall projected growth figures alleged metallurgy copper demand is not too high — increase in demand unlikely to exceed 4.5%. However, some sources claim that even such growth can not be expected, while others insist still on the rise, with the claim that his figure will be more than 5%.
Whatever it was, neither the first nor the second digit is not enough to equalize supply and demand, because the production of copper and nearly four hundred thousand tonnes in 2013 will increase to more than six tonnes, so — by more than 40%. Such an amount of copper will be extracted from existing mines and from those who have just opened. In addition, world experts on the study of copper argue that this trend — not for one year TA. e. the number of existing copper development sites and projections for the discovery of new leads to the conclusion that if the requirements for the production of products market, which require the metal, not increase significantly, the gap between supply and demand will continue to grow, and eventually there will be a a significant surplus of the metal.
But the expected information that such a situation may lead to a decrease in the price of copper, oddly enough, does not arrive. Although it would seem, such a situation would be to provoke a significant reduction in prices, although, according to competent sources, even such a development could hardly change the situation and increase the demand for copper, at least in the volumes that could be a bit lower the gap between production and consumption. However, subject to the constant growth of production the situation is likely to change in the direction of the price reduction.