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Copper prices continue to decline

As follows from the statement of experts news agency «Reuters», the price of copper for the supply of three months during the auction on June 26 at the London Metal Exchange fell by 1% and reached the level of 6737 dollars per ton. Today, life under such contracts traded at 6715 USD per one thousand kilograms.

Not so long ago Angus Staines, an analyst «of UBS», commented on the current market price situation as follows: «The current decline in the value of copper on the metal exchanges — a phenomenon that is difficult to explain.» The analyst said that the resource quotations were to receive support from the temporary cessation of work on the Indonesian copper mine «Grasberg». Indeed, despite the recently announced resumption of production, the output of the enterprise at full capacity for the shipment of copper concentrate will take some time, during which the supply and demand balance has to change for the best manufacturers for copper side.

Angus Staines believes that first of all, the situation in Indonesia, the actual impact on the market of red metal. The price for the next month, according to him, will be 7.5 thousand. Dollars per ton, but further (closer to the month of August) for the resource most likely to continue the trend of reducing prices.

Recall that from the beginning of this year, according to the «International Copper Study Group», the world markets have seen a steady surplus of refined copper. Only in the first quarter of 2013 a surplus of the metal was 22 th. Tons. The situation is caused by — assured analysts — that, during this period, the global copper production increased by 5.2%, while consumption decreased by 5.3%. At the same time one of the world's major consumers of red metal — China — in May 2013 reduced the import of copper by more than 23% compared to the same period last year. In general, since the beginning of this year — reduced foreign purchases more than 33%. Experts predict: in the second half of 2013 a decrease in Chinese demand for copper, associated with seasonal fluctuations continue. In their opinion, this situation is not the best way affect the price situation in the world.

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