How copper price will rise?
Will it be a new low?
And will we see a spike in the demand for copper?
These are the questions that are raising the hackles of the global copper mining industry, as it prepares for a new year.
According to the International Energy Agency (IEA), global copper production will rise to 3.7 billion tonnes in 2021, from 3.2 billion tonnes currently.
That’s about 1.4 percent increase from this year.
The IEA expects copper prices to be around $40 per kg in 2021.
The world’s largest producer of copper, South Africa’s Lonmin, has set a target of $40.40 per kilogram.
In India, copper prices are already soaring.
The government has raised copper prices by 50 percent in recent years.
And now, a new survey by the IEA is raising the alarm.
The latest study, released on January 22, is based on data collected in April.
The study, commissioned by the government of the Indian state of Maharashtra, surveyed 1,000 people in four towns.
It found that demand for mining copper in the state has been rising for years, with the increase in demand driven largely by the introduction of a new, more expensive copper mining licence.
“Our research indicates that in 2019, copper demand in India is expected to increase by 1.5% compared to 2020.
This is driven by the increase of copper prices,” said Anupam Agarwal, senior researcher at the IAE.
The increased demand is expected not only to fuel an increase in the prices of copper in India, but also boost the prices in other copper-rich nations, including Australia, China and Brazil.
Agarwal said the increase could lead to a price war in the global market, and that would be a “very bad outcome for copper producers.”
The IAE’s Agarwals research also found that the global supply of copper has increased by 20 percent in the last decade.
And the demand has grown by about 20 percent as well.
In order to maintain copper supply, the price of copper will have to rise even further, according to Agarwa.
“Copper prices in the US have risen from $0.05 per kilo in 2012 to $0,05 per kg this year, and it is going to increase even more,” he said.
Copper Prices Rise For The First Time in YearsWhile the IEE’s data suggests a surge in demand for the world’s second-most valuable metal, Agarwall said copper prices could be driven up even further by a fall in global supply.
Agarwar said the IEC, the International Copper Association, has warned that copper prices in developing countries, including India, could fall by as much as 15 percent.
“This is not a good thing for the industry and it would cause significant problems,” he added.
Coppers Demand In IndiaIn India’s state of Karnataka, the demand to mine copper is on the rise.
The Karnataka government recently extended its copper mining licences for another two years, and a new copper mining company has been set up to mine more copper in rural areas.
According the government, Karnataka’s copper production rose from 3,976 tonnes in 2012-13 to 3,769 tonnes in 2017-18.
This means that the state’s copper mining revenue is expected increase by 20.2 percent in 2021-22, according the government.
The mining companies, known as Copper Development Companies, or CDCs, are set to extract about 4,000 tonnes of copper per year, according TOI.
The state’s state-run mines have also been working on plans to mine the rest of the country’s copper ore.
According a report in The Hindu, some of the CDC companies have been planning to mine in neighbouring Karnataka state.
These plans were first reported in May this year by a government agency.
According TOI, the Karnataka mining industry is set to increase revenue by around 5 percent per annum from 2021-23 to 2021-24.
And Agarwat said that this would be enough to sustain the industry in the longer term.
“The increase in mining activity will not only stimulate growth in the sector, it will also boost demand for new mining equipment,” Agarwin said.
“That is the case even if there is a drop in the supply of raw materials.”
The report said that the mining companies would need about $4 billion in funding to keep their operations going, which will not come easy for India’s poorest state.
“It is very important that we are aware of these issues and take necessary steps to improve our mining situation in the long run,” Agarewals report concluded.