The estimates look conservative considering the current commodity price environment. MEPS is a world leading independent supplier of valuable steel market data and information. We offer businesses, big and small, unique and competitive insight into steel prices, production and consumption. We provide our customers with the most complete steel market analysis in the world. “You can’t move to a green economic environment and not have the copper price moving significantly higher,” Bintas added.
Meanwhile, copper prices were strong in the second half of 2020, which are expected to lift the company’s earnings in the back half of the year. Now, commodities giant Trafigura expects ‘Dr Copper’ to rise well over the $10,000 mark, as Western economies move out of the pandemic and the green revolution accelerates, head of copper trading Kostas Bintas said in an interview. The world’s biggest copper trader Trafigura Group sees the price of the metal rising to US$15,000 per tonne in the coming decade, as the global decarbonisation and electrification trends take hold and cause a deep market deficit. Scrap copper prices are high at the moment as supply & demand for infrastructure & industries. Scrap copper prices are at an all-time high following demand from imported scrap.
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Despite this, Imports from the UK continued to grow since the first arrival in May, up sevenfold to 1,700t in June, following an end to a scrap ban by china in January. The holidays are fast approaching, and all that merry-making can be expensive. Here’s how you can plan now so you can save time, money, and holiday cheer later on. The market dynamics such as growth drivers, market trends and challenges are analyzed in-depth.
To buy shares in Phoenix Copper you’ll need a share-dealing account with an online or offline stock broker. Once you have opened your account and transferred funds into it, you’ll be able to search and select shares to buy and sell. You can use Stockopedia’s share research software to help you find the the kinds of shares that suit your investment strategy and objectives.
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Several other situations around the world are also boosting prices for the metal. Explore the upcoming webinars and sign up for each on the MetalMiner Events page.
- Gold as a safe haven asset tends to retain its value during times of market turbulence.
- That said, analysts seem to be a little too pessimistic on Antofagasta’s earnings estimates.
- That it’s used so widely in building construction has linked its price closely to housing demand for example.
- CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
- Its revenues had tumbled 15.3% in the first half of the year amid lockdown measures which were further compounded by weak copper prices.
Currently, Antofagasta’s dividend yield is paltry 0.62% which is way below some of the other mining companies. Meanwhile, the key driver of Antofagasta’s 2021 earnings would be higher copper prices. Copper is among those metals that have a positive outlook and doesn’t suffer from perennial overcapacity like what aluminium suffer from.
Indonesia’s Grasberg copper mine, the world’s second largest, has also undergone expansion plans that will see ore production double year over year to 60,000 metric tons in 2021 and achieve 130,000 metric tons in 2023. Meanwhile, US President Joe Biden’s efforts to push through his infrastructure bill for the United States, initially valued at $2.25 trillion, could also help boost sentiment for copper. However, Biden’s most recent counteroffer on the proposal comes in at a reduced $1.7 trillion, which could be bearish for several metals used in infrastructure projects. That marked an increase of 14.6% from approximately 30,080 metric tons in 2019, Reuters reported. Sustained higher prices could also impede rollouts of new electric vehicles. As such, the ongoing “environmental revolution” would precede at a much slower pace, the first source added.
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Market data after #C-COPPER,D1 August 5, 2020 technical analysis still indicate bearish bias. “China’s starting to tighten money supply, and there are some inflation concerns,” the third source added. I don’t think so,” the third analyst said, comparing the environmental revolution to China’s economic rise since the 21st century’s start. Events in South America are not the only determining factor for the higher prices.
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Copper demand is set to skyrocket under the green energy transition thematic, while continued supply constraints due to a lack of new discoveries will shape the upward price movement. Not only are we offering one of the best scrap metal prices for your scrap copper, but we will also ensure that we & reliable scrap metal collection removes the hassle from scrap copper collection. However, the growth would be challenged by a decline in copper ore grades and challenges of more mineral waste from the copper industry.
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Raw Production of copper has gown down massively during the pandemic, as rising infection rates & staff shortages have led to reduced mining output. UK scrap use is also to increase following a scrap ban lifted from china, and push on using scrap material rather raw than raw, crude production methods. Despite this, European steel industry body Eurofer expects demand for steel in the EU to rebound quickly, predicting an 11.7pc jump in consumption this year, offsetting the 11.1pc decline of 2020. “The major driver of the moves in the past fortnight has been fresh money inflows largely driven by inflationary pressures… financial inflows rather than actual physical demand,” he said. A Bear breakout from all-time high due to effect of stronger dollar and closer monitoring of copper market in China and lesser demand. Current and future fundamentals paint a different picture on where the copper price is likely to move.
The major regional markets (Asia Oceania, Europe, North America, Latin America, Middle East & Africa and ROW) have been analyzed in detail. Citigold is available if you maintain a minimum average monthly balance of £150,000 across all your Citi UK accounts, including investments. This has led to the country’s industry snapping up raw materials ahead of controls, further boosting prices. The country’s mills are trying to maintain that level before the introduction of expected controls on production intended to reduce pollution. However, some of the price increases are speculative, rather than being powered by real demand, according to Alastair Munro of Marex’s London Metal Exchange desk.
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Emma’s core expertise is following EU regulatory developments and how these affect financial markets. She set up the climate change and energy news service for the regulatory risk news agency MLex and then worked as a special EU correspondent for the Bureau of National Affairs. Emma has advised key players in Brussels on their media relations strategy and provides content to a range of private and institutional clients. China arguably has the best economic recovery following covid-19, with the demand for copper to stay high. Reducing future disruptions to the supply chain has led to the government strategically stockpiling copper, which will in turn increase as metal prices increase. With a reduction in crude copper production, the use of scrap copper is predicted to support demand in east Asia as part of a long term covid recovery stimulus plan.