Since our previous blog, which talked about the potential for a fall in the price of copper, quite the opposite seems to have occurred. The price of copper has risen to its highest level since April 2012. After falling to a two-year low, the price has skyrocketed to $7,533 per metric tonne. So what caused the price hike?
A tunnel collapse at the Freeport-McMoRan Copper & Gold Inc. (FCX)’s Grasberg complex, which killed 28 miners, has led to suspended production whilst an investigation is carried out. Economists now fear that demand for the metal will now outstrip the global supply levels.
The uncertainty in copper markets is likely to have implications for manufacturing operations and other precious metals around the world. Now, more than ever, it is vital that organisations utilise their resources effectively in order to maximise their investments and potential output at a time when resources may be restricted.
We keep a weekly record of copper prices over on our twitter feed, @dawsonshanahan, so you don’t have to. Why don’t you come over and say hello?