copper commodities project ching and patrick
DESCRIPTION
Copper Commodities ProjectTRANSCRIPT
CopperIB Economics HL
C. Fung and P. Theile
HISTORY OF THE TRADING OF THE
PRODUCT,Chile – 2,350,000
US – 1,890,000
Canada – 740,000
Russia – 600,000
Indonesia – 380,000
Australia – 420,000Peru – 400,000China – 350,000Zambia – 350,000Poland – 340,000Kazakhstan – 220,000Philippians – 115,000Zaire – 40,000
Where is it produced? (in tonnes)
Who manufactures copper?Copper mining companies (eg. Freeport McMoran, Codelco)
Where is copper traded?Primarily the London Metals Exchange (LME); also the Commodities Exchange Division of the New York Mercantile Exchange (COMEX/NYMEX), and the Shanghai Metal Exchange (SHME)
What goods are made from copper?Building construction (eg. Pipes)Electrical and electronic products (eg. Wires) Transportation equipmentIndustrial machinery and equipment
HISTORY OF THE TRADING OF THE
PRODUCT;
1900: $357.00/ton
2006: $6,939.00/ton
Almost 2000% increase;
The price of copper has steadily increased since 1900, but experienced a huge price spike in 2006 when the prices of
many other commodities rose astronomically (price of oil/barrel $80/barrel - $140/barrel)
PRODUCT PRICING,
PRODUCT PRICING,
What conditions are responsible for large fluctuations in price?
Change in the economy.Rise in demand.
In 2006, most commodities experienced a sudden increase in price due to India and China emerging as world powers and primary users of raw materials;
Also, increased and frivolous spending in the United States
PRODUCT PRICING;
Is there an industry group that influences the
availability and price of copper?
International Copper Cartel (1935 - 1939)
Copper producers in South America, Europe and Africa
formed the ICC.
Aim: Smooth price fluctuations by indirectly influencing prices
through supply
INDUSTRY GROUPS & TRADE AGREEMENTS,
“[To] bring about better conditions in the production, distribution and marketing of copper throughout the world outside of the United States…"
Is there an industry group that influences
the availability and price of copper?
Intergovernmental Council of Countries Exporters of
Copper (1967 - 1988)
Aim: To get higher copper prices for members
INDUSTRY GROUPS & TRADE AGREEMENTS;
Chile, Zaire, Zambia and Peru formed CIPEC IN 1967
Australia, Indonesia, Papua New Guinea, and Yugoslavia joined later in 1975
SPECULATORS;
BIBLIOGRAPHY.The International Copper Study Group
(http://www.icsg.org).
Copper Development Association. “The Copper Page”. (http://www.copper.org).
Global InfoMine. “Copper Mining”. (http://www.infomine.com/commodities/copper.asp).
International Copper Assocation. “Copper Info”. (http://www.copperinfo.com).
Callaghan, R. "Minerals Information." USGS. 17 Apr. 2008. U.S. Department of The Interior.
Lugaski, Tom. "Where is Copper Mined?" The Modern Copper Industry. 20 May 1997. University of Nevada. (http://www.unr.edu/sb204/geology/modern.html).