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Reduction of prices for copper - is the temporary phenomenon

21 November 2007
Written by: webmaster Posted under Globalization

The credit crisis, which has burst in the USA in August 2007, has shaken the markets and has created threat of world financial system default. This situation has in not the best image affected the industrial metals’ market.
The investors, who have enclosed the money in copper, have already started to set panic - for last two months the copper has lost more than 20 % in the price. However, the majority of analysts also call for patience, as, in their opinion, growth of demand for copper in 2008 can lead to increase in the prices at this metal in the nearest months.
However, it is necessary to note, that as a whole this year has appeared quite successful for copper - for the expired period 2007at the London stock exchange of metals (LME)  prices for copper have grown on 7 %. These data give investors hope that in the nearest some months it will be possible to expect next “rally” that in many respects will depend on China. If negative economic conditions will be not strongly reflected in this country, it would be quite possible to expect a sharp rise in prices on metal.
According to data of International Copper Study Group (ICSG), pure import of China during from January till August 2007 has grown on 208 % in comparison with the similar period of the last year. The Chinese economy grows very fast rates and the government of the country should increase further volumes of import of industrial metals to support this growth. We shall remind, that in III quarter 2007 the parameter of economic growth of China made 11,5 %, that is only on 0,4 % less, than in II quarter, 2007, and the country has been demonstrating two-place parameters of gross national product for the fifth year successively.

 

 




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