{"id":769,"date":"2019-05-09T09:38:47","date_gmt":"2019-05-09T09:38:47","guid":{"rendered":"https:\/\/campus.hesge.ch\/commodity-trading\/?p=769"},"modified":"2019-05-10T10:04:56","modified_gmt":"2019-05-10T10:04:56","slug":"bulletin-3-copper","status":"publish","type":"post","link":"https:\/\/campus.hesge.ch\/commodity-trading\/bulletin-3-copper\/","title":{"rendered":"Bulletin # 3- Copper"},"content":{"rendered":"\n

Glencore cuts 2019 copper production market as\nhas been lowered following severe flooding in Australia and also due to security\nfailure that led to a 7 percent drop in production for the 1st<\/sup>\nquarter.<\/p>\n\n\n\n

Furthermore, the mining sector has been worried\nand under pressure due to his exposure to environmental and political risk. The\npresence in countries viewed as high risk like Democratic Republic of Congo,\nmight damage the company reputation.<\/p>\n\n\n\n

Indeed, Glencore\u2019s Katanga Mining unit which\nproduce copper and cobalt in the Democratic Republic of Congo had to stop is\nproduction after detecting radiation and Glencore had to install a plant in\norder to remove the contamination. The Katanga Mining Unit just restarted.<\/p>\n\n\n\n

https:\/\/uk.reuters.com\/article\/uk-glencore-outlook\/glencore-cuts-2019-copper-production-target-idUKKCN1S60DO?rpc=401&<\/a><\/p>\n\n\n\n

https:\/\/www.fin24.com\/Markets\/Commodities\/glencore-lowers-2019-production-forecasts-for-copper-to-oil-20190430<\/a><\/p>\n\n\n\n

Copper market still\nundersupply:<\/strong><\/p>\n\n\n\n

Rio Tinto has discovered a potential mine of\ncopper-gold-silver in Winu in Australia. This is a potential boost for the\ncompany growth. If it is not a Tier 1 asset, Rio Tinto will move to another\nexploration project.<\/p>\n\n\n\n

Even though the new projects, Rio Tinto believe\nthat the cooper market will go into a deficit as electric vehicle boom and\nbigger power grids will boost demand while supplies will remain constrained.<\/p>\n\n\n\n

However, analysts at CRU (commodity research unit), think that thanks to major mining projects like Anglo\u2019s Quellaveco, Teck\u2019s Quebrada Balance and many others, the copper market will be in a small surplus market and it will go short in 2023.<\/p>\n\n\n\n

Trade news:<\/strong><\/p>\n\n\n\n

Despite price drop , copper still created desire. Indeed, the electric car and renewable energies have revived interest in this metal. An electric vehicle contains four times more copper than a conventional vehicle. Wind and solar power generation also requires a lot of copper. Several transactions have been announced in recent weeks by giants in the sector. BHP, the world\u2019s leading mining group has acquired an interest in an exploration company, SolGold which has one of the most promising projects in the sector today. China\u2019s number three copper miner, Zijin Mining, has taken over Serbia\u2019s largest mine. Anglo American had previously chosen to launch a $5 billion mining project in Peru.<\/p>\n\n\n\n

Futures Forward Curves<\/strong><\/p>\n\n\n\n

previous<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n


<\/p>\n\n\n\n

Current<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

By comparing 2 forward curves above, we can notice some changes in the copper market. In the previous curve, the market was in the contango directly from April, meaning that the there was an oversupply situation. In the current curve, we are in backwardation. The market turns from a bearish to bullish market to an undersupply situation. <\/p>\n\n\n\n

http:\/\/marketqview.com\/forwardcurvechart.php?ID=18&TYPE=Price<\/a><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Glencore cuts 2019 copper production market as has been lowered following severe flooding in Australia and also due to security failure that led to a 7 percent drop in production for the 1st quarter. Furthermore, the mining sector has been worried and under pressure due to his exposure to environmental and political risk. The presence … <\/p>\n

Continue reading “Bulletin # 3- Copper”<\/span><\/a><\/p>\n","protected":false},"author":116,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/posts\/769"}],"collection":[{"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/users\/116"}],"replies":[{"embeddable":true,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/comments?post=769"}],"version-history":[{"count":5,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/posts\/769\/revisions"}],"predecessor-version":[{"id":789,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/posts\/769\/revisions\/789"}],"wp:attachment":[{"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/media?parent=769"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/categories?post=769"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/campus.hesge.ch\/commodity-trading\/wp-json\/wp\/v2\/tags?post=769"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}