The shortage of copper has come up in May, which also brought up the price. During the past decades, copper has become one of the most crucial elements of development worldwide. Thus, anyone who takes advance of the development of society would be responsible for the shortage. As a demand-supply drive commodity, the price should be tightly linked to demand. Now, in this shortage situation, the price of copper goes down. Why is that?
“A number of producers in this market have grown extremely conservative over the past decade. This has really caused underinvestment to kind of percolate through the supply chain, and obviously now that’s creating problems,” I’Anson told CNBC on Wednesday.
That sounds me is like that the producers can adjust the amount of their product until the market fits balance.
“So a lot of these firms are now realizing that prices are higher and they want to take advantage, but the lead time to get new mines online is going to take quite a long time,” he said.
Besides, people in the most edge area seek a greener and eco-friendly material to take the place of copper. This may take time, but it still a signal that the time of copper may end up.
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