subject: Copper Powei sluggish consumption, a strike worries constitute support - Cable, Cable - Broadcasting [print this page] Copper Powei sluggish consumption, a strike worries constitute support - Cable, Cable - Broadcasting
Copper consumption has been hit recently put pressure on copper prices, both Shanghai copper LME price or prices to a downward correction, LME 8100 U.S. dollars in intraday trading last week near Shanghai copper Powei pre-order platform, short-term fluctuation is optimistic. While the overseas market to strike trouble after another, but poor short-term consumption of a greater degree of price volatility.
Weekend planned in Peru miners strike to boost the total copper and other base metals, here the market has just experienced the world's largest copper producer - Chile Codelco company subcontracted workers strike. Union leaders said the mining companies in Peru nearly 20 workers plan starting from May 12 went on strike for better pay treatment. Peru's copper production more than 1.1 million tons, production of 1.4 million tons of zinc, lead output of over 300,000 tons. Peru is the world's largest zinc producer. Mexico, through its subsidiary, Southern Copper Group, the country has a number of copper. BHP Billiton, Xstrata and FreeportMcMoRan Copper & Gold Inc. also has a large copper mine in the country. Although past experience, usually involve only a few mines, the market is expected to soon be out of the shadow of the strike. However, Chile Codleco 20-day strike, the company still in living memory, people are concerned about the strike could cause further supply disruption. Strike at Codelco company, subcontracted workers, leading to occasional acts of violence to strike yield about 45% of the total output of the three mines closed during the strike at least loss of 19,000 tonnes of copper. Macquarie noted that since the beginning of the supply disruption and the expected surplus of 300,000 tons in just the opposite, so the market balance, and more inclined to supply-side information to promote further gains.
By the sub-prime crisis as consumer of copper in copper consumption this year by the U.S. will face additional pressure due to continued decline in the housing market after the U.S., followed by non-domestic copper demand expected to drop, compared to 2007 and 2008 Year to date domestic copper demand falls, reduced demand for non-residential will have a greater impact on copper demand. U.S. March housing starts down 11.9% to 94.7 million, for the lowest since March 1991, based on past experience, usually one to two years of residential construction slowdown, the commercial buildings will begin construction activities slow down. Non-domestic copper demand seen as the main driver of copper consumption in 2007, its share of total U.S. consumption of about 72% of refined copper market is expected to 2008, non-residential and residential copper demand will decline for the past 15 years these two markets for the first time fallen. Copper Consumption in China this year has been less than ideal, as the Government policy of credit crunch led to China Electricity shortage of funds, curbed the demand for copper in the industry, resulting in China, the world's largest copper consumer, imports continued to decline. 1 to 2 this year in snow and ice storms in the restoration of the damaged power concentrated in the elevated aluminum Cable And communication Cable Instead of copper wire Cable . Shortage of funds are reducing orders from electric power industry, while China's credit tightening policy is to reduce copper rods, copper wire plant and grid construction contractor's cash flow, there are about 30% of the copper rods and copper production capacity is currently idle . According to a report last week, Macquarie said that China's apparent consumption of copper in the first quarter of this year, an increase of only 1%, the shortage of funds has forced the postponement of copper copper processing plant procurement, and extend the product's production cycle. From a technical point of view
, LME next support level at around 8000 U.S. dollars, technical adjustments do not affect the overall rally in copper prices. Shanghai copper gains early has been lagging behind the LME, a huge spread inside and outside the ratio will drop to some extent, inhibit the space, from a technical point of view, 62,000 and 60,000 positions will form the support phase.
