Copper

Importance of changes in the global copper price on Chile and Peru economy

The growth of the concentrate price in 2021

11% of Chile’s GDP and 10% of Peru’s GDP are related to the extraction of mineral metal; among all these metals, copper is known as the crucial one in these two countries. As a consequence, copper accounts an important metal for the countries’ economies.

In view of the increase in the global copper price in 2021, Chile’s concentrate and cathode experienced an increase in their export price which respectively was 33.9% and 34%, and this increase was about 35% and 32.6% for Peru’s concentrate and cathode.

September 9, 2023 Copper

Limited Supply Effect on TC Concentrates

Increasing Revenue of Smelters and Refinery

It’s worth mentioning that during the first quarter of 2021, TC decreased by a 17% average monthly rate and recorded the least amount of the recent decade. With the help of Chinese smelters’ closing down and demands dropping, TC increased, and over the last quarter of 2022, owing to the shortage of concentrate supply without any changes it remained at high levels.

Key mines of Chile and Peru faced production disruptions due to heavy rains and indigenous protests, and this matter caused a drop in production and exacerbating the supply deficit of copper concentrate in Indonesia’s mines last year. Therefore, the drop in concentrate production was one of the crucial reasons for TC’s upward trend all over 2022.

July 14, 2023 Copper

Similar per capita consumption trend of refined zinc, lead, and copper

Refined zinc, lead, and copper per capita consumption survey

Generally, the per capita consumption trend of refined zinc, lead, and copper has been increasing in 2002-22. The refined lead and zinc per capita consumption decreased by 1.1% and 5.3% respectively in 2009 due to the 2008 financial crisis beginning.

Refined copper per capita consumption faced a 0.9% drop in 2009. Although, zinc consumption decreased in the USA in view of the financial crisis, the increase in China’s consumption compensated for this drop. Also, the per capita consumption of copper decreased along with the higher growth of population than copper consumption growth. Because of the EU Debt Crisis, lead and zinc per capita consumption decreased, but copper per capita consumption was not affected vastly by it due to the fact that the largest copper producers and consumers are in America and Asia.

June 8, 2023 Copper, Lead & Zinc

The world molybdenum concentrate market is dominated by South America

The global trades of molybdenum concentrate investigation

Molybdenum concentrate is used as a raw material in various industries including steel and alloying, and it is particularly used in the production of alloys required by the aviation industry, as well as iron casting, including steel sheet, rebar, and steel pipes.

Chile with the help of 31% share in export of molybdenum concentrate in 2021, turned to the largest molybdenum in the whole world which Japan and South Korea are this country’s key export destination. And the largest importer of molybdenum is china with 14% share of the global imports and Chile is its main imported origin.

April 9, 2023 Copper

The competition of the biggest world’s wire rod producers; Japan defeated Korea

The world’s wire rod market

During the last 10 years, China has promoted its position in the world’s wire rod market and it could increase its own share to 48%. Even so, the high speed of economic growth made more development of China’s share in the global wire rod demands.

China, India, Japan, and South Korea are 4 countries that are considered to be the most important semi-fabricated copper producers that during the last 10 years, on average, have produced near to 55% of the world’s wire rod. Meanwhile, China and India’s shares increased, while the other 2 countries lost their share in this market.

February 24, 2023 Copper

Chile’s position in the global copper cathode trade is weakening

The global copper cathode trade

Chile has maintained its first position in the global market of copper upstream product, such as copper cathodes over the past 10 years, and has accounted for a share of 30%. But despite the greater prosperity of the copper trade, the global growth rate of Chile’s export share decreased.

Chile, Japan, and Russia are among the main copper cathode exporters in the world. These 3 countries accounted for about 43% of these upstream copper products in the global total export market on average, over the past 10 years.

November 16, 2022 Copper

Global crisis of copper market during Russia-Ukraine conflict

The impact of Russia-Ukraine conflict on the global copper market

Russia, as one of LME copper supplier, plays a key role in the supply of European copper, and the sanctions imposed after Russia-Ukraine conflict and the lack of purchase from Russia’s producers have faced Europe with a copper deficit and the copper price increased to over $10,000/t over the period.

The geopolitical tensions between Russia and Ukraine, followed by growth of the US interest rates and other central banks due to the higher global inflation, increasing the copper price at a certain point. The surge in fuel price led to a growth in transportation cost and other production costs, which also had an effect on the higher price of commodities, including copper.

August 14, 2022 Copper

The growing demand for enamelled wire along with the fall in its trade

Global trade of enamelled wire

Germany, China, and Italy are among the main exporters of enamelled wire in the world. On the other hand, with the exports reduction over the recent years, the US has started to import higher volume and hit a peak compared to other countries in 2021, which could be due to its growing demand.

July 23, 2022 Copper

FOX Currency Switcher