The global market might hit a copper surplus in 2014

According to the forecast of UGMK, a copper surplus might form on the world market in 2014. As it is said in an annual report of the company, it is due to significant expansion of production capacities of the world’s largest copper producers. In 2013, copper production was lower than copper consumption as well as in 2012 and deficit made up 282 thousand tons. Zinc deficit on the global market made up 69 thousand tons and 30 thousand tons of lead last year.

In 2011-2013 the demand for non-ferrous metals went up, while the deficit let prices keep to the same level. In Q1, 2014 copper, zinc and lead price went down against Q1, 2013. The average quarterly cost of copper went down by 11% to $7.401 thousand per 1 ton, zinc – by 0.5% to $2.29 thousand, lead – by 8.5% to $2.106 thousand.