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Copper supply shortfall in 2011 ranging from 380,000 tonnes to as much as 500,000 tonnes. India figures prominently among emerging nations as a consumer of copper in 2011. World copper prices ruling at a level to make our low metal content in ore less development deterrent.
Copper supply shortfall in 2011 ranging from 380,000 tonnes to as much as 500,000 tonnes. India figures prominently among emerging nations as a consumer of copper in 2011. World copper prices ruling at a level to make our low metal content in ore less development deterrent.
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Copper supply shortfall in 2011 ranging from 380,000 tonnes to as much as 500,000 tonnes. India figures prominently among emerging nations as a consumer of copper in 2011. World copper prices ruling at a level to make our low metal content in ore less development deterrent.
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Attribution Non-Commercial (BY-NC)
Format Tersedia
Unduh sebagai PDF, TXT atau baca online dari Scribd
dent took place, research hous- prices are ruling at a level to
es and banks were unanimous make our low metal content in in saying that supply shortages ore less of a development de- will help the red metal in out- terrent. Moreover, our ore, in shining other base metals. We spite of all its deficiencies has have got forecasts of copper today an edge over the world supply shortfall in 2011 rang- average in terms of metal rich- ing from 380,000 tonnes to as ness. much as 500,000 tonnes. Go- The worsening deficit sit- ing beyond 2011, Standard uation besides, what is squeez- Bank says the deficit will rise ing copper market to its tight- ANALYST’S VIEW to 562,000 tonnes in 2012. In- dustry representative body In- est is the improving demand outlook for the metal in the US, ternational Copper Study Group where the economy, according KUNAL BOSE is anticipating a shortage of to former Fed chairman Alan 435,000 tonnes this year. Greenspan, is picking up speed f one is asked to take a bet The increasing tightness in to likely record growth of 3-3.5
I on which commodity in the
metal space will shine most gloriously in New Year, they un- copper supply has got much to do with not so encouraging in- vestments in the past to iden- per cent in 2011. The US inci- dentally is world’s second- largest market for copper after hesitatingly will choose copper. tify, prospect and open new China. As November data will Generally, ahead of year-end mines as minerals and metals confirm for straight five months, holidays, the market doesn’t groups worldwide were hand- the US consumer and business see much activity as traders are icapped by the low prices that expenditure is rising. mostly engaged in book squar- the red stuff got for a long time Interestingly, Moody’s down- ing work. But taking a break in past. This also created a sit- grading Ireland’s rating by 5 from the routine, the red met- uation for the miners to go on notches and on top of that IMF al three-month futures prices randomly removing the bet- offering a discouraging view of this time moved from one peak ter quality ore from mines. the country’s debt problem has to the next before the holiday No surprise, therefore, that the not proved bad enough news break. world average copper content for copper bulls. Similarly, the The fundamentals are in ore is steadily falling. lingering concerns about Chi- stacked so much in favour of India figures prominently na raising interest rates – these copper that many are seeing among emerging nations as a came for revision for second the metal sprinting to $11,000 consumer of copper in 2011. Af- time in over two months – have a tonne and perhaps beyond ter all this country recorded a left no impact on the copper during 2011. As if the world smart 13 per cent rise in copper market. If anything, traders are supply in normal course falling use during 2009-10 and the trend drawing inspiration from Chi- short of demand is not enough, should continue, if not gather na’s copper imports amount- owners of the world’s third in further momentum as we ing to 3.95 million tonnes in the largest copper mine Collahuasi grow GDP at the current rate first 11 months of 2010 when in Chile invoked the force ma- with sufficient focus on infra- its production was a high 4.37 jeure clause the other day to structure development. But the million tonnes. suspend supplies of copper con- local copper industry here has Amidst all this, the artifi- centrate for an unspecified pe- a structural weakness in that ciality of the physical market riod. This is further feeding fu- only a small portion of con- where one trading house has el to progress of metal price. centrate from which cathodes cornered most of LME stocks Shipments from Collahuasi are made is locally generated. is contributing to market tight- came to a halt in the wake of Chairman of Hindustan ness. The outlook for the met- three workers perishing under Copper Shakeel Ahmed sees al being so good, it is only to be the weight of a collapsed an opportunity in this, HCL hav- expected that a few investment shiploader at Patache port ter- ing lease rights over 280 mil- vehicles backed by physical cop- minal. It could be at least an- lion tonnes of the country’s ore per will get launched. Once these other fortnight before copper reserves of 370 million tonnes. vehicles get regulatory clear- concentrate could get shipped He is to recommission HCL ances, a long process by any from Patache. The market can- closed mines, step up produc- measure, they will be secur- not but react to shipment dis- tion at operational mines and ing for themselves large quan- ruptions from Collahuasi which also open new ones. HCL could tities of physical copper send- in 2009 had a 3.3 per cent share not have chosen a better time ing the premiums higher. We of the world’s mined copper. to target a mineral produc- have big names like JP Morgan, These disruptions are, how- tion of about 12.5 million tonnes BlackRock and ETF Securities ever, a short-term phenome- by 2015-16 from 3.2 million lining up to lauch copper ex- non. But well before the acci- tonnes last year. World copper change traded funds.