Open figure viewer
Significance
Three-month copper futures stand 24% below year-earlier prices. The reasons for this slide are common to other commodities: a strong dollar, oversupply and falling demand in China, which consumes 45% of the world's copper.
Impacts
Some copper producers in Zambia could shutter operations depending on the outcome of parliament's plan to triple mining royalites.
Shanghai Clearing is likely to launch a renmimbi-denominated copper premium swap, allowing hedging of warehouse receipt pledges.
Higher refining charges will boost margins for downstream operators, but hurt mining companies without smelters.
Keywords:
International,
INT,
Asia,
China,
Indonesia,
North America,
Peru,
United Kingdom,
United States,
Zambia,
Chile,
Kazakhstan,
Mongolia,
economy,
industry,
politics,
finance,
foreign investment,
growth,
hard commodities,
mining,
government,
investment,
natural resources
© Oxford Analytica 2020. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2015
You do not currently have access to this content.
