Copper oversupply caused the metal’s price to slide for its third consecutive time. However, other reports seem to indicate the demand in the global market has not decreased, based on other companies’ continual search for the base metal. Alarms concerning continuity were also raised when a mining operation was hampered in South America, as reported by Money Control.
As of publication, the trading value of copper is 309.2 to 313.2. The decline of the stock was the third such incident in three weeks. One related development is the apparent surplus in the international markets, although this cannot be ruled as the single reason alone.
Money Control says that China continues to be a powerhouse in copper exportation. It shipped 28,848 tons of overwrought copper this year. This is a 121 percent increase compared to the amount of copper exported last year. China’s supply of refined copper likewise hiked in September by 7.2 percent compared again to 2015 figures.
Market Pulse adds that the top 20 copper producers in the world have been increasing their output by five percent every year. These companies compose 60 percent of the leading international copper companies. The first quarter of 2016 indicated a rise in production by 15 percent.
MMG operations resume
The restoration of operations in the MMG Las Bambas copper production facility in Peru can also contribute to the market’ copper oversupply. Mining reported a 10-day strike by miners and other employees over what they perceive to be safety infractions. The protest blocked the flow of the metal from Peru and the delivery of copper to customers waiting for it. The development just came in time because Las Bambas, one of the world’s largest producers of copper, would not have been able to deliver the much-needed coal, given the current history.
The Market Realist points out that the resurging strength of the dollar can further lower copper prices. Observers are anticipating the rise of the Federal rates in the U.S. after its presidential elections this November. A rate hike can spike the dollar, which in turn will impact dollar-related commodities like copper and gold. A stronger dollar will depreciate the price of copper.
The Market Realist records the performance of the major industry players last week. BHP Billiton fell by 0.16 percent. Freeport-McMoran tumbled by 1.7 percent. Glencore slipped by 0.35 percent. Still, others were on the ascendant side. Rio Tinto rose by 1.4 percent. The SPDR S&P Metals and Mining ETF was up by 0.5 percent, and the PowerShares DB Base Metals increased by 0.37 percent.
3 things you need to know about your leadership off-site
Woman to Watch: Isabel dos Santos
A-level results and UCAS Track can help your career—here’s how
10 things you need to know: This week in entertainment and sports
The unsung hero of office renovation—pacing
The marijuana industry is replacing the alcohol industry and creating jobs
Constitutional facial acupuncture is the safer, more natural anti-aging regimen—here’s why
How IoT is revolutionizing the retail sector
Why Longevity Eastern Medicine is becoming the popular center for holistic health
Highly experienced Doctor of Acupuncture reveals the secret of beauty and longevity (part 2)
Promoting women’s football in Malta by UEFA projects
Euro NCAP marks its 20th anniversary with two crash tests
European Parliament’s International Trade Committee backs CETA
The American Heart Association has released four new PSAs
PwC presents 20th global CEO survey results in Switzerland
Featured2 days ago
Resort Marketing Group settlement: Will you receive anything?
Entrepreneurship1 week ago
5 websites where you can earn extra money or start your business right now
Business7 days ago
Will IBM India’s impenetrable encryption tech stop Anonymous hacker?
Entrepreneurship6 days ago
How to invest in Google AdWords in 2017
Business1 week ago
How will recent Google innovations change the direction of businesses?
Economy1 week ago
Data privacy and security in India is so tough that Switzerland decided to auto-share bank info
Business1 week ago
Top social media influencers for fashion and beauty brands
Featured1 week ago
Here’s why Warren Buffett does not want $100B in cash