Development trend of brass copper

1. International copper consumption has maintained a certain growth rate, but the growth rate has dropped:

Since the 1990s, two types of countries have played a major role in the growth of international copper consumption. One is the developed countries in North America and Europe, and the other is the developing countries, less developed countries and regions in Asia and South America. ; Consumption ratios are roughly equally divided between the two groups of countries.

Looking at the future development trend, the consumption of copper materials in the first group of countries has basically stabilized, and the growth rate of copper consumption is relatively low. The economic development potential of the second group of countries is large, and the consumption of copper materials may maintain a rapid growth rate. In particular, China, India, and Russia have experienced rapid growth in copper consumption in the past two years. It is expected that the growth of world copper consumption may slow down in the near future, but the long-term growth of the international market will not change.

2. The development of international copper mines has increased, but supply is still tight in the short term:

In the context of the rapid rise in international copper prices and the continued tight supply of mineral resources, the price of copper concentrates has been rising. While the profits of mining companies have risen sharply, it has also stimulated mining companies to increase their resource development efforts and promote rapid production capacity. It is expected that the growth rate of global mineral output in 2007 will reach more than 5.5%, and the amount of metal will be about 16.5 million tons. Among them, the copper-containing copper output of China's copper concentrates reached 830,000 tons (news), an increase of 9.97% year-on-year, accounting for about 5% of the global total output.

According to CRU related data statistics, in recent years, the main countries for the development of copper mine resources are Chile and Peru. And the main countries of copper mining resources development projects in Asia are China, India, Inner Mongolia and other countries. We believe that although the supply is still growing rapidly, it has not been fast enough to reverse the shortage of copper concentrate supply in the short term. Any major emergencies affecting copper production will cause a shortage of concentrate supply. Therefore, it is expected that the global copper concentrate supply and demand situation in the past two years is still not optimistic.

3. The recent fluctuations in international copper prices are large:

Over the past few years, copper has exhibited two attributes, one as a commodity attribute and one as a financial attribute. As a commodity, copper has been in tight supply for the past few years, and the price of copper has naturally kept rising. The high returns brought by the rise in copper prices will undoubtedly attract more funds. These funds consider copper materials as part of the investment portfolio. Investing in copper materials can increase returns and avoid the risk of inflation. Is given the attributes of finance.

Judging from the current situation, although the economic situation of the United States and some developed countries in the recent period is not optimistic and has a certain restraining effect on copper prices, low inventory and strong expectations for Chinese copper demand are still the main factors supporting copper prices. Therefore, it is expected that the price of copper will still be relatively high and fluctuate widely in the near future.

4. The pace of joint reorganization of large international copper companies is accelerating, and the monopoly of mineral resources is increasing:

The tide of economic globalization has spread to various fields, and the copper industry is no exception. In order to adapt to market competition, in recent years, the pace of joint reorganization of large-scale foreign copper companies has accelerated, and industrial concentration has also increased. The expansion of business scope has become a trend, so we continue to see acquisitions, mergers, and alliances to form larger multinational companies to achieve large-scale operations and expand market share.



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