The price of the red metal continues to grow
The company «Jiangxi Copper» standing on the top position among Chinese manufacturers of copper products, in early July announced the plan to lower production rates. In particular, it was intended to the third quarter of this year, which analysts predict will be a decrease in consumption of copper in the growth stocks of the State Reserve of China from 200 to 300 thousand tons. The specialists of «Jiangxi Copper» involve the reduction of the present cost of production by at least 5%, and this despite the fact that the quotes, since the first of July decreased by 10.5%. However, production volumes will decline relatively smoothly, each new leap is estimated at 5−10% of the monthly quantity of products.
Government copper Commission «Cochilco», Chile has amended the previously announced data about the average price of copper for 2014 — with a mark of 3.05 USD per pound price jumped to 3.12 USD per pound, which was influenced by the expectation of strong demand for copper from China. The following year, the Commission estimated that prices will drop to the level of USD 3 per pound. That to Chile, smelting of the red metal in the country this year will increase by 3%, to 5.95 million tonnes, helped by the launch of «Caserones», «Ministro Hales», «Sierra Gorda». The previous forecast assumed production volume of 6.07 million tons, and correction professionals make in connection with the delay in projects. Chile is a producer of about 1/3 of the world total of copper, but there is a problem regarding poor quality of raw materials produced on old fields. According to preliminary calculations of the Commission in 2015, the production of the red metal will rise by 5.4% to 6.27 million tonnes.
In may of the current year the smelting of copper has increased by 4.9% compared to the same period of last year, the Commission «Cochilco» reported in the data provided by it. The amount of melted metal for the period amounted to 493,1 thousand tons, while last year the figure was at the level 469,9 thousand tons. In the past month, earnings from export of Chilean copper was down 1.2% compared to the same period last year, while foreign supplies brought in 3.3 billion USD, and over half of Chilean exports of copper brought a revenue of approximately USD 19.3 billion. The exports of the red metal during the period from January to April increased by 18.1% compared to the same period in 2013.