Copper King Mining Corporation fka CPRKQ

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Copper Production Falling

Labor troubles, problems at mines, and a decline in the supply of high-grade copper ore have caused the world's supply of the metal to fall to a four-year low, two Barclays Capital analysts told Bloomberg Business Week. The world's copper stockpiles will only be able to meet 2.7 weeks of demand by the end of the year if the present problems continue, Gayle Berry and Nicholas Snowdon told Bloomberg. The two think that this situation will be sufficient to raise copper prices from the $8,300 a ton average in the first quarter to $9,300 a ton in the fourth quarter.

Freeport's problems at Grasberg were among the many factors the analysts cited as evidence to verify their predictions. They also noted that production at the Kennecott Union copper mine in Utah had dropped by 18% in the first quarter. Kennecott is owned by Rio Tinto (RIO).

Berry and Snowdon's prediction is based on increased demand for copper from China and other countries. So far, China's demand for copper seems to have fallen off this year, and there is no indication that it will rebound any time soon.

The CEO of the world's largest copper producer, Codelco, doesn't agree with them. In mid-April 17, Diego Herandez said that he expects copper supply to exceed demand by 2017 because of the increased production in Peru and Chile, Business Week noted. Codelco, the Chilean government's copper company, is among many producers that are expanding production.

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