Copper market outlook for 2015 seems to be unsteady

LONDON (Scrap Monster): The large copper mining companies are expected to increase their production capacity in the coming years, which would put on a large pressure on the price of the commodity. But if the supply of these miners fails to materialize, as a result of decline in the grade of ore, or any issues related to the industry, then the price of iron ore might tell a different story in the year 2015.

International Copper Study Group, an international copper research body, in its forecast in the month of October stated that, the supply of copper around the globe would increase by about 4.3 percent, and at the same time the demand might only increase by about 1.1 percent, which would leave the copper market with a surplus of about 393,000 tonnes of copper. The demand for the metal is weakening even in the emerging markets. And in addition, Europe is also contributing to strengthening the possibility of  a deficit and hence providing pressure on the price of the price of the component.

China proved to be strong consumer of copper in the year of 2014, but that might change in the year 2015.  China’s decline in demand for steel and slowly moving  economy was the main reason for decline in the price of iron ore in the year 2014. The decision regarding the fate of iron, whether it would be a deficit of the metal or a surplus, it can only be decided by the performance of the market in the next year, especially the emerging markets.