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thekiwi

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Demand for copper is expected to outpace production in 2017, putting the market in a supply deficit for the first time in years.

 

While total copper production is expected to come in at 22.64 million metric tons, consumption is expected to reach 22.92 million tons, resulting in a deficit of 275,000 tons, according to commodity consultancy Wood Mackenzie.

 

In 2016, the copper market was oversupplied by 345,000 tons

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Rio Tinto believes a copper shortage will emerge this year, as interruptions to supply at three of the world's biggest mines start to take a toll.

 

The copper industry has long predicted that an over-supply of copper will exist until around 2019 or 2020, but Rio's chief executive of copper and diamonds, Arnaud Soirat, will tell a major copper conference in Chile this week that there will be no over-supply in 2017.Mr Soirat will tell the conference that low copper prices in recent years have driven discipline across the sector that will soon deliver a shortage.

 

"In the last 18 months the industry has seen around 700,000 to 800,000 tonnes of price-related cutbacks and as a result forecasts of a market surplus have fallen substantially and we now see the market moving into a small deficit this year," he will say.

 

Mr Soirat is expected to tell the conference that copper production will plateau in coming years, as declining grades at existing mines overwhelm the small number of new mines coming into operation.

 

"With continued modest growth in demand, a substantial supply gap may emerge by the beginning of the next decade. This could result in higher prices," he will tell the conference. "I think there is broad agreement that copper has continued upside ahead."

http://www.afr.com/business/mining/rio-tin...20170403-gvcnp7

 

BHP - The bullish thesis for copper

As a company we have made no secret of our liking for copper in the medium to longer term. We anticipate it will be the first mineral commodity in our portfolio to return to fundamental market balance [chart 1]. Structural grade decline creates an ongoing imperative for new copper supply [chart 2].

 

That future supply will likely be higher cost, based on a range of macroeconomic, socio-political and geographic factors - as well as idiosyncratic issues we track on a project by project basis. Chief among these is the rising costs associated with a greater reliance on desalinated rather than aquifer water.

http://www.bhpbilliton.com/media-and-insig...esis-for-copper
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BHP has opened an office and is seeking to add staff in Ecuador as it advances a search for copper in a nation that's becoming the sector's exploration hot-spot. Melbourne-based BHP's local unit, Cerro Quebrado, will spend about $82 million on exploration, having established a base in the capital, Quito, and advertised for workers including a senior geologist. The value of Ecuador's mining sector could rise to $7.9 billion by 2021 from $1.1 billion this year as major players arrive, according to Fitch Group's BMI Research.

 

BHP joins Australian competitors including billionaire Gina Rinehart's Hancock Prospecting, Fortescue and Newcrest in establishing offices or adding exploration licenses in the nation, according to Rodrigo Izurieta, president of Ecuador's Mining Chamber. The miners are attracted by expectations that the country holds major, undiscovered copper and gold deposits, and assurances that newly installed President Lenin Moreno will continue efforts to woo investment, he said.

 

"There is no doubt that the interest is increasing, so much so that we can talk about a new phase for mining in Ecuador," Izurieta said by phone from Quito. "Ecuador is one of the world's last mining frontiers, but it is under-explored and under-developed. There is a great window of opportunity." ..............

https://www.bloomberg.com/news/articles/201...n-last-frontier

 

tough gig ->. Andes PLUS rainfall

 

 

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Copper price surges to 2-year high

Frik Els | about 11 hours ago

 

Copper futures trading on the Comex market in New York raced higher on Tuesday on renewed optimism about demand from top consumer China and indications of tighter global mine supply.

 

Copper for delivery in September jumped to a high of 2.8540 a pound ($6,292 tonne) in early afternoon trade, up 4.3% on yesterday's close to the highest since mid-May 2015. Copper's 2017 year to date gains in percentage terms now top 13% and the red metal is trading 28% higher than this time last year.

 

http://www.mining.com/copper-price-surges-2-year-high/

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According to Antogafasta CEO IvÃÆâ€â„¢ÃƒÆ’ƒâ€Â ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒ¢Ã¢â‚¬Å¾Ã‚¢ÃƒÆ’ƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚¡n Arriagada....

 

Copper market the most supply constrained:

11th August 2017

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“I think here we are in the initial stages of a major disruptive technological change, associated to both clean transport and clean energy,ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ he said.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“As cost parity of electrical vehicles seems to be coming down very quickly, public policy and private adoption of mass electrical transport seems to be coming round the corner.

 

ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Â¦ÃƒƒÂ¢Ãƒ¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…âہ“The same is true of clean energy as energy storage and distributed energy supply networks are making significant in-roads into everyday life.ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’â€Å¡Ãƒƒâہ¡ÃƒÆ’‚ÂÂ

 

Arriagada predicts the changes will drive copper demand in ways yet to be fully understood.

http://www.resourcesrisingstars.com.au/new...ned-antofagasta

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Teslas of the World a Boon to Aluminum and Copper Too

By Aoyon Ashraf

August 18, 2017, 6:00 AM EDT

The booming demand for electric vehicles will create demand for more than just lithium or cobalt over time. The switch from gasoline to electric will require a large amount of infrastructure, [quot]which takes a lot of copper and aluminum too, according to Franklin TempletonÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s fund manager Stephen Land.

 

"With EV push, itÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s hard not to feel optimistic for aluminum and copper demand," according to Land, 41, who co-manages the roughly $1.08 billion Franklin Gold and Precious Metals Fund. Copper has always seen demand stemming from auto and electronic devices, and this EV push will accelerate that demand.

 

Supporting LandÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¾Ãƒâہ¡ÃƒÆ’‚¢s thesis, electric cars contain about three times more copper than a regular vehicle, according to Glencore. Even more is needed for charging stations, with Exane BNP Paribas predicting infrastructure will add about 5 percent to demand by 2025.

https://www.bloomberg.com/amp/news/articles...franklin-s-land

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As expected - Copper price rallies after Grasberg violence

Frik Els | about 6 hours ago

Copper futures trading on the Comex market in New York rallied again on Monday spurred by troubles at the world's second largest copper mine and large-scale speculators positioning themselves for a continued run in prices.

 

Betting on better copper price

On the copper derivatives market hedge funds built long positions ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ bets on higher prices in future ÃÆâ€â„¢ÃƒÆ’ƒâہ¡ÃƒÆ’‚¢ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â€š¬Ã…¡Ãƒâ€šÃ‚¬ÃƒÆ’…¡Ãƒâہ¡ÃƒÆ’‚¬ÃƒÆ’¢Ã¢Ã¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã‚¡ÃƒÆ’‚¬Ãƒâ€Â¦ÃƒÆ’¢Ã¢Ã¢â‚¬Å¡Ã‚¬Ãƒâ€¦Ã¢â‚¬Å“ to a new record high last week according to the CFTC's weekly Commitment of Traders data. So-called managed money investors' net longs now total over 120,000 lots, the equivalent of 3 billion pounds or 1.36m tonnes worth around $9 billion at today's prices.

 

On the London Metal Exchange, hedge funds have also increased their bullish bets in recent weeks and according to LME data net longs total over 74,000 lots. LME contracts are for 25 tonnes which translates into more than 1.8m tonnes worth some $12.3 billion. LME data will be updated tomorrow.

http://www.mining.com/copper-price-rallies...sberg-violence/

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Copper Stockpiles Sink Most in 12 Years Amid Traders' Tug of War

By Mark Burton

August 25, 2017, 11:02 PM GMT+10

Copper inventories on the London Metal Exchange recorded the biggest weekly drop in more than a decade, a positive sign for market bulls who pushed prices to an almost three-year high, even as others urge caution.

 

Stockpiles have moved in a sawtooth pattern in the past year amid a tug of war between traders with opposing views of how the market will shape up. The latest figures continue the pattern and investors should avoid viewing them as straightforward evidence that a glut in supply is now over, according to Standard Chartered Plc metals analyst Nicholas Snowdon.

https://www.bloomberg.com/news/articles/201...ders-tug-of-war

 

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