The copper market is quite volatile at the moment. With a variety of different questions about labor, licenses and supply, it might be time to take a step back, analyze what the future holds for the market and put your company in a good position no matter what happens.
At Imperial Wire & Cable Co., we take our role as an industry-leading wire and cable distributor seriously. We want you to succeed and have access to the products you need at a reasonable rate. That being said, here’s what you need to know about the current state of the copper market.
Work Stoppages
Just this month, there has been two work stoppages that have impacted the copper market. Freeport-McMoRan, Inc. is the majority owner of the Grasberg copper mine in Indonesia, which is the second largest in the world. Due to an export licensing dispute with the Indonesian government, shipments of copper concentrate have been put on hold since Jan. 12. This standoff has helped send the price of copper over $6,000 per ton on the London Metal Exchange.
A worker’s strike at BHP Billiton’s Escondida mine in Chile is another work stoppage that has affected the copper market. Demands by the workers and the company are far apart on terms for a new labor contract.
Shrinking Supply
According to Citi Research, copper supply will dip into deficit this year for the first time since Feb. of 2011. Demand is expected to grow in China, while copper inventory will be lacking and cost deflation will be ending. China’s copper consumption rose approximately 5.7 percent in 2016 alone. By 2020, prices could climb to $8,000 per ton.
Fresh Evaluation
The work stoppages and shrinking supply of copper will impact your company and the rest of the market. We at Imperial Wire & Cable Co. are prepared to help you anticipate this shift by providing updated quotes and the information you need to make prudent purchases before prices go up any higher.
If you wish to learn more about the copper market from a leading wire distributor and how it will affect your company’s purchases, you can contact us by calling 888-501-4359 or filling out a contact form on our website.