INTERNATIONAL JOURNAL OF SCIENTIFIC & TECHNOLOGY RESEARCH VOLUME 4, ISSUE 10, OCTOBER 2015 ISSN 2277-8616

Analysis Of Copper‘s Market And Price-Focus On

The Last Decade‘s Change And Its Future Trend
Eugie Kabwe, Wang Yiming

Abstract: it is important to analyse the major players within a copper supply chain, as well as current market dynamics, relevant international
guidelines, major impacts affecting the sustainability of the whole system and policy drivers affecting its price on the global market. Focusis on
understanding major and provisional factors affecting copper price on themarket,long-term copper prices are determined by the fundamentals of supply
and demand. Short term however, are driven by financial market and other variables. Through analysis of the major factors and present market
dynamics, global copper consumption increased since 1970, regardless of the economic slump in 2007-2009, growth is likely to continuechiefly driven
by increasing demand in China and India. Since 2004 the price of copper on the global market increased drastically, its consumption was mainly
concentrated in developed industrial countries. The economic situation of developed countries has a greater impact on copper prices, addition of Asian
nation‘s increased urbanization and industrialization. Forecasts remain progressive asAsia advance with urbanization and industrializationplans.
Anticipated to account for a major growth in global copper in the next 20 years, will present a large task to double copper supply output. Urbanization
and industrialization will continue to surge copper demand, projected to overcome global copper production, high demandbut lesser supply on the
market.The decline of copper supply would cause a mountingdeficit in turn increase demand by 2025. Asia‘s level of economic activity and urbanization
is far from complete, it will be a chief source of copper demand in the decades to come.

Keywords: CAGR, capital investment, Copper, grade, industrialization, market, resource nationalism, urbanization.
————————————————————

1 INTRODUCTION experiences is something many expect to continue in a long

Globally, the market for copper is one of the largest of all term. While these factors lead to a wide range of copper prices
metals behind iron and aluminium. The size of the global over time, there are influences that also affect each of these
market for refined copper is over U$150 billion every areas and contribute to the overall price to a lesser degree.
year, Copper has been a material component in the growth of
human civilizations for thousands of years. Copper is easy to 2.1 Demand
work with, an efficient conductor of heat and electricity, One of the biggest factors affecting the price of copper is the
corrosion resistant and its abundant. The US Geological demand. Copper is a material used in a great deal of
Survey (USGS) estimated in 2013 global land based copper applications, including new construction and remodelling.If
resources of over 3.1 billion tons of which 690 million tons economies are growing, then the demand for new construction
were listed as reserves. These estimates have more than and more copper also grows along with it. Building accounts
doubled since 1970 as annual world mined copper production for approximately half of all copper use, with engineering
has increased. As an added benefit, reprocessing contributes accounting for nearly 25%, and electrical applications
significantly to the amount of refined copper available, with accounting for approximately 17%. Growth in Asian economies
estimates ranging from 20-30% of annual refined copper in particular which account for 50% of all copper use, is
production. Copper plays an important role in our industrial another important factor (Black 2015).
production and copper wire has a great impact on the telecom
industry. But the copper price, more or less, limits the 2.2 Supply
development of the above two industries. In order to promote
the development of our industry, there is need for us to
understand the factors affecting copper price.

2 Factors affecting copper price

Factors affecting copper prices include supply, demand,
pressure on commodity markets and current stockpiles already
in place. Given these variables, and the fact that many operate
independently of the others, the variability price copper often
_______________________

 Eugie Kabwe is currently pursuing master’s degree

program in Mining and Mineral Resources
Engineering in the School of Civil and Environmental
Engineering, University of Science and Technology Fig.1.Source: InfoMine.com
Beijing, 100083 Beijing, China.
Supply may increase or decrease over time, the trend tends to
E-mail:[email protected] show an overall decrease in the amount of copper being
 Wang Yiming is currently a Professor in Mining and mined. Copper production comes mainly from America,
Mineral Resources Engineering at theUniversity of Europe, and Asia, which combine for more than 90% of the
Science and Technology Beijing. copper produced in the world. As less copper is produced, the
more precious of a commodity it becomes and thus the higher

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copper prices tend to be. Counteracting this effect is the

mining of more copper, finding new supplies of copper, finding
other price-competitive materials that can substitutecopper.

2.3 Hedge funds

The increase in various hedge funds that have a focus, or
atleast a partial focus on commodities also affects copper
prices. Managers of these funds look at data and try to
determine supply and demand statistics. This obviously has a
real-world link, such funds can increase instability in copper
prices, especially in the short term. In the past, prices tended
to change more gradually but there are more spikes, both high
and low in the current marketplace.
Fig.2.Source; InfoMine.com
2.4 Commodity markets
Copper prices began rising in late-2003 due to strong demand,
In 2014 copper prices went through four distinct periods(Fig.
falling stocks and the impact of earlier capacity closures when
3.), prices averaged US$ 6,668/t in March, steadily rose to
prices were low. Strong Chinese and Indian demand growth
US$6,671/t in April, in May the price reached approximately
has been a main contributor to higher prices. However,
US$6,884/t and in June dropped to US$6,806/t, the price
numerous supply shortfalls due to strikes, technical problems,
picked up to US$ 6,874.73/t in September-October.
lower ore grades and delays in bringing on new copper
projects has been the main factor that have kept stocks
frequently low and propelled prices to record nominal rise in
2006.

2.5 Stockpiles
Stockpiles help to offset some of those pressures on copper
prices, may be used with more regularity. Copper stockpiles
reached their lowest levels in six years in 2010, which led to
higher prices that year. As long as demand continues to
outpace production then copper prices will likely continue to
remain high. The use ofexisting copper stockpiles is however a
short-term solution to pricing pressures.

3 GLOBAL MARKET TREND

3.1 China’s and India’s massive urbanization plans
Long-term prospects remain bright as China and India, the
world‘s largest copper consumer nations, forge ahead with Fig.3.Source; InfoMine.com
massive urbanization plans, as a result markets expect prices
to stand at above US$6167/t through the next decade. 3.2 India’s copper demand
Looking at a recent study Wood Mackenzie estimates a price India is one of the top 20 major producers of copper
of US$6,607.5/t by 2020 and beyond, while analysts and worldwide, but falling prices of copper on the global market
investors predict an average of US$6424/t for 2018-2022. In would also benefit India, it is one of the world‘s biggest
the last 10 years copper price on the international market, has importers of the metal, alongside China, Japan, South Korea
increased significantly (Fig. 1.), the copper market has shown and Germany. As a result, instability in prices of the metal on
a discrepancy throughout the year 2012 nevertheless the the LME has animportant bearing on Indian copper trading.
improbability affecting the global economy.Estimation of the Typically, over 30% of India‘s copper demand comes from the
world‘s refined copper shortfall was at 199,000Mt for 2012 and telecom sector and 26% from the electrical sector. In addition,
133,000Mt(metric tons) for 2013. The decline in 2013 shoots the building and construction, engineering, transport and
from slower rates of supply and demand growth while financial consumer durables sectors are major consumers of copper in
market instability may keep demand down in the coming India. These sectors stand to benefit the most from lower
years, the structural flow in demand is expected to continue in prices of copper. The Indian copper industry grew by nearly
the long term. Copper pricesperformedrather erratic after the 50% in 2011, India has become a net exporter of copper after
last 5year‘s record average of US$ 8,778/t (Fig.2.), the highest being a net importer during the last decade, even as the
since 1966 and the second-highest since 1935. Prices country is not a major producer of copper ore but produces the
averaged US$7,552.6/t in December 2011, climbed back up to refined forms of copper. A decade ago, the Indian copper
US$8,439.2/t in March 2012 driven by the unfavourable state industry consisted of a single state-owned company and now
of the global economy. the copper industry takes up about 3% of the global market for
copper. In 2011, India‘s copper demand estimation grew by at
least 7% following a similar forecast in 2010, fed by the power
sector. Conferring to India‘s 11th five year plan (2007-2012),

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the country‘s power generation sector made a huge

investment with 150 power projects for the various stages of
installation. Inception of the 12th five year plan (2012-2017)
urbanization and industrialization is expected to grow, refined
copper demand is expected to grow at CAGR 7-8% yearly till
2025(Fig. 4.) Growth will continue to increase due to industrial
development, construction, power, telecommunications and
automobile sectors.

Fig.5.China’s Global Consumption towards 2025; source:

Brook Hunt, 2012

3.4 Resource nationalism

On the supply side, there is once again a rising trend of
‗resource nationalism‘ in the copper industry, leading to project
delays and supply disruptions. This has been proved in a
Fig.4.India’s refined copper consumption number of developing countries where there are government
desires to declare more control over natural resources sited in
3.3 China’s copper demand their territories.
Over recent decades, China has experienced rapid economic
growth and a related sharp increase in its rate of urbanization. 3.4.1 Mongolian Tax Authority claim
The speed of this transition, along with the sheer size of Early 2014, Rio Tinto‘s 650ktpa OyuTolgoi copper mine
China‘s population, has resulted in China being an received an audit from the Mongolian Tax Authority claiming
increasingly significant driver of global growth and mineral unpaid tax, penalties and disallowed entitlements associated
resource demand over the past decade. China‘s copper with the initial development. Rio Tinto claimed they had paid
demand picked up in the summer season of 2014 with the first all taxes and charges as required under the investment
five months outputs of power generation equipment and air agreement and Mongolian law. Resolutionwas reached by
conditioners, recording year-on-year growth rates of 16% and September 2014, this delayed the 350ktpa underground
20% respectively. The strong demand has been caused by a expansion feasibility study, and hence this will drop the supply
near term urbanization plan and a surge of infrastructure of copper.
investment in China, which includes State Grid‘s RMB400bn
(US$64bn) investment budget for power distribution and China 3.4.2 Mining codes Amendment; Zambia and DRC
Railway‘s RMB800bn (US$127bn) investment target in railway Zambian government reviewed mining taxes to boost
construction where copper is widely used in contact wire to government revenue because of ―inadequate‖ contributions
provide railway communication. AME estimates China‘s from the mining sector. Early 2014 the government initiated a
demand for copper to grow at a year-on-year growth rate of 10% export duty on unprocessed concentrates, this has led to
3.5%, offsetting the risk of liquidation of invisible stocks in the the stockpiling of at least 300kt of copper concentrate due to
Shanghai bonded warehouses. Financial deals in China are limited domestic smelting capacity. Given the uncertainty of
likely to be shaken by the recent Qingdao port probe over an the tax regime, First Quantum, the operator of the 160ktpa
alleged fraud of collateral obligations used to secure loans. Kansanshi copper complex in Zambia, threatened to delay
However, the speculated reduction of bonded warehouse $1billion in investment for project expansion.The DRC and
inventory has not been observed, with observed stocks Zambia are amending their mining codes to enable the
stabilizing between 700–800kt. As copper has been widely government to raise taxes and implement a 35% minimum
used as a tool for trade finance, it is a possible case that the ownership threshold for state shareholding in projects.
Chinese government would like to regulate the existing market
instead of prohibiting it. If so, the financial demand for copper 3.4.3 Indonesian export ban
in China may continue to grow and the market risk associated Little progress was made to the Indonesian export ban
with bonded warehouse collapse will be largely moderated. recently.Indonesia is drafting a new mining export tax that
China at the moment is a major market and consumer, would more than halve the base rate (originally proposed to
accounts for about 35% of the world's copper consumption gradually ramp up to 60% until 2016) to be paid by
and the figure is growing at a rate of over 6% CAGR expected miners.However, it is still unsure whether miners will accept
to rise to over 50% by 2025 (Fig.5). the new terms, furthermore, Newmont the operator of the
115ktpa BatuHijau project recently announced that it is
preparing to seek arbitration against the Indonesian
government in international court, bringing more uncertainties
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over when and how the issue will be resolved. Usually, copper price in January is the lowest, and it will reach
its peak in August,the copper price will be fluctuating year in
3.4.4 Suspension of Chilean key mining projects year out.
However uncertainty prevailed following the suspension of
several key copper projects, most of which are expected to 4.4 Substitutes’ price
contribute to an increased copper capacity in 2012-2025.The In telecommunication industry, copper is an important raw
revised and delayed copper projects include the expansion of material but the promotion and application of fibre-optic
Phase III Collahuasi, HypogeneQuebrada Blanca, Relincho, technology has challenged the status of copper.Copper price
Inca de Oro, Santo Domingo and Phase II Andina. The impact is determined by the combination of several factors,we cannot
of these delays is expected to result in a reduced copper affect copper price. But we can change our way of thinking
production of 8.1Mt rather than the 8.4Mt originally projected such as recycling scrap copper. This will not only get rid of the
by 2020.Conferring to a report by ComisiónChilena Del Cobre changeable copper prices but also can protect the
(COCHILCO), the delays experienced by the various projects environment.
were due to:
4.5 Temporary factors
External factors; There have been temporary factors that have restrained
 Effort in ensuring power supplies below current costs, investments in new capacity and delayed new projects,
Chile‘s power generation capacity currently is at 17,000 namely
megawatts.Estimated that the country will need at least  Shortage of skilled labour and equipment
30,000 megawatts of power by 2020 to keep up with the  Higher wage demand and strikes
increased demand primarily from mining projects.  Environmental groups
 Improving the environmental impact assessment and  Higher prices for energy and materials
obtaining permits to build infrastructure required for the
project. Higher prices for energy, materials and wages are expected to
contribute to higher costs in future, augmented by increasing
Internal factors; costs of new developments in more difficult regions. These will
 High costs considered for investment and/or operation, be partly offset by development of new technologies.
which would force companies to redefine their respective
projects.Some of the projects, such as Pascua-Lama, 4.6 Aging mines, lower grades in new projects
have forced miners to re-evaluate their respective Older existing mines, the base of copper supply have
projects. increasing costs with production rates stagnating or even
declining because of lower grade. Half of the world‘s copper
4 DISCUSSION reserves are more than 50 years old and four of the seven
China and India have an urban population of 50% and 30% largest copper producers are over 70 years old. Declining
respectively. Both countries have massive construction copper grades means a much larger relative scale of required
projects designed to bring urban population levels closer to mining and milling operations, growing proportion of mining
70% which prevails in most industrialised countries. Further projects are in remote areas of developing economies where
urbanization and industrialization of China and to a lesser there‘s little to no existing infrastructure (Fig. 6). As grade
extent India, will continue to increase copper intensity, drops the amount of rock that must be moved and processed
projected to overcome annual global copper production in a per ton of produced copper rises dramatically, while using
few years‘ time,in that there will be more demand but less more energy that costs several times more than it used to.
supply of the commodity on the market. This leads to delay of certain copper projects i.e. Chilean key
mining projects.
4.1 International Economic Situation
Copper consumption is mainly concentrated in the developed
industrial countries. The economic state of these countries
such as USA, Japan, Western Europe and other countries has
a greater effect on copper prices. Generally, if the economy
situation is good, the demand for copper will increase, then the
copper price will rise and vice versa.

4.2 Producing Countries’ Production Status

Chile has the most abundant copper resource and it is also the
world's largest copper exporter. Zambia and Zaire in central
Africa are important copper producers and the copper they
produced are almost entirely used for export. So, these
countries production status has a large impact on the world‘s
copper market. However, the political situation in these three
countries is turbulent and the labour disputes happen quite
often, which increase the instability of the global copper price. Fig.4.Industry Head Grade Trends

4.3 Seasonal Factor 4.7 Environmental group and labour risks

The seasonal fluctuation of copper price is quite obvious. Shortage of skilled labour and labour strikes are serving to keep
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supply low while demand grows. Improvement of environmental peak in 2015 to about 21.0 million Mt and begin to drop due to
impact assessments and obtaining permits to build depleting ore bodies and lower grades. The rate of depletion is
infrastructure required for new projects is a major concern, much greater than the rate of discovery of new copper
which face serious opposition from environmental groups, who deposits, the decline of output copper supply would cause a
by far been wildly successful in suspending several key projects growing shortfall. In turndemand in 2025 is expected to rise to
in Chile. about 28.3million Mt.

4.8 Lower economic attractiveness of new projects

Copper mining has become an especially capital intensive
industry, the average capital intensity for a new copper mine in
2000 was between US$4,000-5,000 to build the capacity to
produce a ton of copper, now capital intensity is net worth of
$10,000/t, on average for new projects. Capital intensive
Greenfield projects in geo-political risky developing countries
requiring noteworthy infrastructure investment beyond the
ordinary scope of the mining operations are associated with a
higher risk of delays andCapex. Capex (capital expenditure)
costs associated with the development and construction of
open-pit and underground mines are rising because:
 Declining copper ore grades means a much larger relative
scale of required mining and milling operations
 Growing proportion of mining projects are in remote areas Fig.5.Global Mined Copper Output (Million MT/Year).Source:
of developing economies where there‘s little to no existing based on Wood Mackenzie
infrastructure.
 Increasingly expensive to bring new mines, especially new 6 LONG TERM OUTLOOK ON DEMAND
copper mines on line and run them.
Copper demand is a function of three major segments:
5 LONG TERM OUTLOOK ON COPPER SUPPLY 6.1 Real economic growth
Long term copper prices are determined by the fundamentals of
supply and demand,short term however are determined by 6.1.1 Transportation Systems
financial market and other variables such as hedge funds, Conferring to the Copper Development Association the
political risks, government policies. Copper supplies are likely to average vehicle contains over 23kg of copper and even more
exceed demand in 2014 and 2015, we further expect this for electric cars. The average railroad train uses 5000kg of
situation to persist for 2016 and 2017. This is less than an ideal copper.While electric subway cars, trolleys, and busses
environment for promoting rising copper prices. However, the contain a weighted average of 1043kg. When these numbers
economics of copper mining have changed radically over the are combined with farm and industrial equipment, as well as
last 11 years. Operating costs for the sector have risen airplanes.It shows that copper is a major commodity in modern
markedly while the copper grades have, and are expected to industrial development.
continue to decline. Moreover, copper inventories are also near
slumps preventing prices from moving back to pre-2004 6.1.2 Industry
depressions. Over the 10 year estimate period, copper price are Much of developing Asia is transitioning from rural based
likely to rise as capital costs and regulatory risks for large scale economies towards urban manufacturing based economies
mining development projects have become significant hurdles that require increasing amounts of commodities including
depressing investment into future production. copper. As China‘s economy continues to emerge, there are
other Asian nations looking to emerge i.e. Indonesia, Malaysia,
5.1 Resource nationalism Philippines and Vietnam, these experienced recent geopolitical
Countries already affected by some level of nationalization struggles, yet many have made substantial progress since the
Zambia, Mongolia and Indonesia, account for 10% of global late 1990‘s. In particular, Indonesia and Vietnam appear to
copper concentrate supply. Similar situations may also take offer strong industrial growth potential (Fig. 8). The global
place in several countries which are subject to high political manufacturing growth is expected to rise at an average of
risks i.e. South Africa, DRC, and Philippines.The copper 4.5%/year towards 2025.
production in these high political risk regions is currently
approximately 2.5Mtpa, 17% of global copper in concentrate
supply.

5.2 Mined Copper Supply

Looking at the long term outlook on copper supply 2011-2025,
from the global mined output of 2010 which was about
16.7million Mt(Fig. 7).Global mined copper supply is expected
to decline to 15.7million Mt by 2025. This projection is based
on the baseline of production in 2010 plus expansion and
projects under construction, less reductions due to depletion
and declining copper grades.It is projected that supply will
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capacity added than traditional fossil fuel plants (FFPs) and

nuclear power plants (NPPs). Aluminium substitution for land
based renewable technologies is a concern. However, the
corrosion resistance of copper is important for offshore wind,
which is likely uneconomic in thecurrent environment but
whose benefits should ensure eventual development along the
USseaboard.

7 CHALLENGE IN THE MINING INDUSTRY

The mining industry is facing a dramatic change, one that
greatly affects our industry, an exceptional change that creates
an enormous challenge and a massive opportunity. The world
is rapidly becoming urbanized, with an extra 1.4 billion people
predicted to move into cities within 20 years. Yet the
Fig.6.Long Term Manufacturing Growth % population shift will be worldwide, it is being led by China and
India. People who move to cities require houses, roads,
6.2 Urbanization schools, power stations and stadiums, and gain the wealth to
Building Construction in China and India will continue to purchase user goods, such as refrigerators, cars, and air
require massive infrastructure investment as urbanization conditioners, hence more demand for metal. It is estimated
continues. Quantity of copper use will be substantially higher that the typical per-capita requirement for metal products is
during expansion and construction of physical infrastructure 155 kg for China‘s rural people and 817 kg for China‘s urban
than in developed economies. In China, between 2002 and dwellers. Demand for all base metals, mostly iron, copper, and
2012 over 178 million people moved into urban centres. BHP aluminium, will likely double from 2010 to 2025, due largely to
reports copper usage intensity in China increases by a factor this population shift. It is also projected that the world will
of 2-3 times when comparing urban centres to rural villages. consume as much copper in the next 25 years, as it has
KPMG expects on average 15million people to move into during the last century. China‘s iron ore imports are expected
urban centres every year in China between now and 2030. to double from 2010 to 2016, following many years of growth
Copper wiring and piping, as well as copper alloys are used that has made China the world‘s largest consumer of traded
extensively in both commercial and residential construction. iron ore, copper and aluminium, together with nickel, steel and
Hence the demand for copper is projected to grow drastically coal. Satisfying this huge growth in demand is the mining
by 2022 (Fig.9.), this in turn will raise the copper price even industry‘s greatest challenge, must be confronted head-on.
further by 2020. In Power &telecom infrastructure copper is The industryneeds to work differently to keep pace with this
one of the best metals for conductivity and corrosion growing demand. The old ways will not be good or fast
resistance. Though silver is a better conductor and gold more enough, change is essential, mine output rates must increase.
stable, the price differential of these two metals relative to Currentresources must be extended to yield more. Lower-
copper prohibits substitution. Therefore, copper is ideal for grade reserves must be selected.Exploration and discovery
power cables, building wiring, and telephone wire. must become more effective, search for new high-value
reserves must accelerate. These outcomes must be delivered
during a global industry skills shortage and against a
background of diminishing surface deposits and rising costs.
Higher outputs must be achieved at lower unit costs. Working
against the need for lower costs are increasing energy costs,
the threat of climate change, and the higher cost of mining
deeper ore bodies and lower ore grades, probably in more
challenging geopolitical locationError! Reference source not
found..

8 CONCLUSIONS
The industrialization of China and India is changing the
economic world order, anticipated to account for more than
half of the growth in global copper over the next
decades.China accounting for almost half of the growth and
representing the bulk of the increase, is clearly the new force
in commodity demand and presents a large task to the metals
industry to increase output over the next two decades.
Fig.7.Projected Regional Copper Demand
Gradually we will see falling average grades being mined,
mines becoming deeper, more remote and come with
6.3 Capital Investments increased political and nationalization risk. Extraction of metals
Energy supply and environmental concerns, combined with from the mined ore will become more complex and expensive,
increasing efficiencies and decreasing system costs for even more considering the effects of increased energy costs,
renewable energy technologies, will continue to fuel renewable cost of technology innovation to power mining will be very
energy growth over the long term. Renewable energy plants high. Chinathe major market and consumer accounts for about
require more amount (Kgs) of copper per megawatt (MW) of 35% of the world's copper andprojected to rise to 50% by 2020
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as hundreds of millions more people migrate from the country Status Report for 2012 and Prospects for 2013-2014,
to cities, bolstering the need for infrastructure. Prices are Cochilco Research and Policy Planning Department.
expected to rise as a result, there is a possibility that they will
be a 50% gain in copper prices over the next few years. [8] Garay, Daniela Rojas S. Francisco Donoso R. Jorge
China, India and other developing countries have the potential Valverde C & Víctor. 2012. Copper Market Trends
to absorb higher demand for metals than predicted, and this Report. Report, Cochilco Research and Policy
would increase the strain on the respective industries to Planning Department.
develop new supplies. However, prices are expected to be
cyclical, and not become permanently higher at anywhere [9] Jayaram, Arvind. 2013. "India to benefit from copper
near recent price levels. Despite its per capita consumption of surplus in 2013." The Hindu Business Line. January
mineral commodities still being relatively low compared with 12. Accessed
advanced economies, China is now the largest market in the january20,2015.http://www.thehindubusinessline.com/
world for aluminium, steel and copper. China consumes 35% portfolio/market-strategy/india-t...
of the world's copper expected to rise to 50%, China and India
projected above50% global copper growth, will set a challenge [10] Aruvian's Research group. 2013. Analyzing the Indian
to double copper supply output. Urbanization and Copper Industry. Dublin: Aruvian's Research.
industrialization will continue to increase demand, insistently
overcome annual global copper supply by 2019.Decline in [11] Kapur, Amit. 2005. "The future of the red metal—A
output copper supply would cause a growing shortfall in turn developing country perspective from India."
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28.3million MT/year. It concludes that, since the conjunction of
China‘s and India‘s level of economic activity and urbanization [12] Manmohan, Singh. 2013. Twelfth Five Year Plan
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[13] Liu, Jin, and Tony McDonald. 2010. China: growth,
9 ACKNOWLEDGMENT urbanisation and mineral resource demand. Economic
The author wish to thank God, for all the blessings, the late Mr Round-Up 2, Melbourne: Macroeconomic Policy
Eutone Makasa Kabwe,his immediate family for moral and Division, the Australian Treasury.
material support during the master‘s research studentship.
Acknowledge the guidance during the production of this article [14] Luu, Brendan Coates and Nghi. 2012. China's
by the academic staff in the Mining Engineering Department at emergence in global commodity markets. Economic
the University of Science and Technology Beijing. Roundup Issue 1, Australian Government the
treasury.
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