As the global demand of copper goes on increasing at a very fast rate the focus will be more towards scrap or recycled copper. The large demand-supply gap due to poor mining results is expected to shoot the copper prices to new heights in future.
NEW YORK (Scrap Monster): As the global demand of copper goes on increasing at a very fast rate the focus will be more towards scrap or recycled copper. The large demand-supply gap due to poor mining results is expected to shoot the copper prices to new heights in future.
The challenges related to copper industry were discussed in length at the Metal Bulletin Global Copper Markets Forum in New York. The event was attended by copper and financial industry executives.
As reported by MarketWatch, Michael Jansen, J.P. Morgan Chase & Co.'s head of metals research, mentioned that in future the copper industry will rely more on the recycled copper.
Every year the mining results have been quite disappointing and to ameliorate these concerns, copper fabricators will increasingly turn to scrap copper to substitute and augment supply.
However, Barclays Capital expects that increase in demand from China and tight copper supply will increase copper prices to $12,000 a metric ton by the end of 2011.
The efforts to reduce inflation by decreasing credit significantly hit metal consumers and decreased copper imports to China. Most of the copper inventories have been consumed and it has increased the demand drastically.
However, as the restocking takes place, China will be forced to increase imports and tap the global physical market for supply. The Chinese imports of copper are expected to increase steadily in July.
This increase in copper demand, along with tight global copper supply, is expected to push prices to new records in near future.
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