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China's energy sector is experiencing decline

At the end of this year, the use of refined copper in China has become increasingly directed to energy orders. At the beginning of 2014 in connection with the terms and conditions have tightened lending, the situation was more complex, given the failures of small consumers. In 2014, China's energy sector is experiencing some decline, although in recent years more than 50% of the demand for copper had on him. If in energy demand will continue to decline, the Chinese were forced to reduce import volumes of copper. This will have an impact on the formation of the global market value of the metal.

According to data provided by industry sources, this year it was planned 10% increase in investments in the energy sector. However, in reality there was a decrease of investments at the level of 0.6% with respect to 2013. According to leading analyst of Information Development, a sharp decline in investment would affect the consumption forecast to decrease. Analysts forecast growth in consumption of 6.7% to 8.7 mln. Tons. Representatives of the State Grid Corporation of China, a leading investor in the energy system of China reported an unexpected inspection of the May. Presumably, this audit was the factor that influenced the decline in demand in the energy sector for the period 10mesyachny. In this case the final objectives of the audit and remained unknown.

Meanwhile, the government of Peru announced the conclusion of an agreement on the draft environmental company «Southern Copper». Investments in the expansion of career toquepala caves are estimated at 1.2 bln. USD. According to preliminary calculations, the successful completion of the project will improve the production of copper per year at 100 thousand. Tonnes. When expanding the mine capacity will increase the volume of its storage, as well as adding a new hub. The Department of Energy has agreed to provide an opportunity for expansion and construction processes at the mine. In August this year also «Southern Copper» has received government permission to carry out works on the copper deposit Tia Maria.

Activities «Southern Copper» controls the Mexican company Grupo Mexico, the world's third largest copper producer. Corp. The main activity carried out in the northern regions of Mexico and the southern region of Peru. Mexican Corporation holds 75.1% «Southern Copper». According to representatives of Grupo Mexico, developed mine can ensure production of copper in the amount of 658 thous. Tons.

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