Page 44 - MEX-Yearbook-2017

Commodity Insights
Copper
Introduction
Copper has been known to mankind for thousands of years and has been
an important metal in human development since it has similar properties
as some, more expensive, metals. Copper is similar to silver and gold in
many ways as the red metal is very ductile, malleable and it can very easily • Copper ranks as third most-consumed industrial metal in the world,
conduct heat and electricity.
While copper may share some similarities with the precious metal group,
copper’s extremely cheap price causes the metal to have far more uses
in industrial applications. Copper is used throughout wiring systems as
well as in plumbing and circuit boards as well. In addition to copper wire
and copper piping, the reddish-orange metal is used in power generation
and transmission, heating and cooling systems, and telecommunications
equipment, ensuring that the metal remains a crucial aspect of modern
industrial life.
Likewise, according to the International Copper Study Group (ICSG), the
top importers of copper are China, Japan, India and the Korean Republic.
Among various metal available, copper is one of the most recycled one. It is • The copper market is expected to remain essentially balanced in 2016
our ability to recycle metals over and over again that makes them a material
of choice. Copper is referred as “man’s eternal metal” due to durability and
versatility.
Fundamental Facts
• Copper is used in special tools and military applications due to its non-
magnetic and non-sparking features.
• Chile accounts for over one-third of world’s copper production
followed by China, Peru, United States, Australia, Indonesia, Zambia,
Canada and Poland.
43 | MEX NEPAL YEAR BOOK 2017
• Though copper is a superior conductor of electricity, most electrical
overhead lines in the world are actually made out of aluminum because
it cost lower than copper and provides similar effectiveness.
after iron and aluminum, about three-quarters of that coppers goes to
make electrical wires, telecommunication cables, and electronics.
• The major countries consuming the copper are China, US, and Europe.
Any major news regarding copper demand from these countries affects
the price of copper.
• The other key factors that affect the price of copper are supply side,
substitution effects, emerging market demand, demand from China and
production of copper.
and 2017 from the projection of ICSG. There will be a small deficit of
127,000 t and a surplus of 175,000 t for 2016 and 2017, respectively,
forecast at October 2015 meeting.
• In order to reduce the cost, industries can use aluminum instead of
copper which can reduce the demand for copper and can reduce its
price as well.
• Copper is the standard benchmark for electrical conductivity. It is good
conductor of electrical current better than any other metal except
silver.
• According to a survey made by the U.S Geological Survey (USGS),
every American born in 2008 will use 1309 pounds of copper during
their lifetime for lifestyles, necessities, and health.