The extraction of coal and iron ore is constantly increasing, providing a negative impact on their prices. At the same time, zinc and nickel are in demand on the market, as for copper, it is somewhere in the middle. Copper prices hit a five-year low in January, but solidified at around $ 2.70 per pound or $ 6,000 per tonne, and sentiment towards higher metal prices is already emerging due to possible supply problems.
Most analysts believe that demand for copper and its alloys will be moderate and will continue to grow at a rate of around 3-4 percent, fueled by robust, albeit slowed, demand from China, which consumes 45 percent of the world's copper. Copper is used in many industries, but electrical engineering is considered the main one. Copper-zinc alloys are called brass, and brass sheet due to its good mechanical properties is widely used in the chemical industry, mechanical engineering, instrument making and other areas.
Chief Copper Sourcing Consultant CRU Group predicts a tiny shortage this year, ahead of a significant shift next year. Investment bank Citi also predicts a copper deficit in 2016. Copper supply disruptions associated with adverse weather events, technical problems, power shortages or poor job stability contribute to a decrease in supply.
In addition, delays and delays in the commissioning of projects, the shutdown of mines and a reduction in production due to a decrease in the price environment over the past two to three years, allow us to understand why such predictions arise.
