Copper boom hits recession: Delta crisis hits market below 9 9000

- Chilean copper mine workers avoid strike as workers and owners reconcile

Market players have been confused by the recent two-way jump in prices in various metals markets around the world. In addition to precious metals, a similar situation has recently emerged in the markets of various industrial metals. Copper is considered to be the market leader in industrial metals. Fluctuations in copper prices affect various metals. China's role in the global industrial metals market has been key. Prices of such metals skyrocket when it comes to Chinese inquiries and buying, and the absence of China puts the prices of such metals under pressure. The recent weakening of various economic figures in China has had such an impact on the world's metals markets. The recent industrial production figures in China have been weaker than expected. In addition, retail sales figures have been less encouraging than experts expected. This had an effect on various industrial metals of the world, including copper.

The London Metal Exchange is a major hub in the global market for industrial metals and the price fluctuations on these LME exchanges are immediately felt on the world metal market. Recently, however, the role of the Shanghai Exchange in China has also come to the fore. Copper prices in the world market have been fluctuating significantly over the last 12 months. During the 12-month period, global copper prices have hovered at a low of ૬૩૮૫ 8 to 20 per tonne, while highs have risen above ૧૦ 10,000 to ૪૫ 1,050 to ૪૬ 1,050. In September-October last year, prices fell below ૭ 2,000 to close to ૬ 2,000, but in the subsequent period, the recession has stalled and prices have been rising steadily. The highest price in April-May this year was above હજાર 10,000. Copper prices have also seen a sharp decline recently as China's data has weakened. Before the data was released on the day of China's weakening, global copper prices traded at a high of થી 60 to ટ 70 a tonne, but since then, China's weak figures have led to a sharp drop in global market prices of થી 200 to ૯૪ 310 a tonne. Were. In the subsequent period, prices fell further and recently traded below ૯ ​​2,000 per tonne.

Meanwhile, according to world market experts, China's import of refined copper was around 5-6 lakh tonnes in 2020, but the pace of such imports by China has slowed down this year. Such imports have declined by about 10 per cent in the first half of 2021 and such monthly imports in May and June have come down to less than three lakh tonnes recently. A similar situation is seen in July and August. This issue is also a cause for concern in the global copper market as imports of scrap copper have increased compared to refined copper in China. Meanwhile, global copper prices plunged to a low of થી 80 to ટ 7 a tonne last year when corona infestation peaked in the world market. The news that the third wave of corona in the form of delta virus has started in different countries of the world has recently re-emerged in the markets of various industrial metals including copper. News of a recent labor unrest in Chile's copper-producing mines has been circulating. However, since then, there have been rumors of continued production. In China, industrial production fell to 2.50 per cent from 2.50 per cent, while retail sales fell to 18 per cent from 18.10 per cent recently. Ascondida is considered to be the largest copper mine in the world in Chile. There has been a recent labor unrest in the mines but since then there have been reports that the issue has been settled. Meanwhile, in the Republic of Congo, China Molly Group plans to double production of copper and cobalt. The production capacity of Congo's copper mines is being increased, with a target of increasing the annual production capacity of copper by about two lakh tonnes. It will cost about ઢ 2.5 billion to increase copper and cobalt production. It was decided to increase the production capacity in the world market due to the recent surge in copper prices. Now, however, the market is looking down.