TSX:ARG - Post Discussion
Post by
BSdetector2016 on Jun 23, 2024 8:20am
Differentiating between long-term and short-term
China over-built copper smelters, just like the 90 million unfinished apartments it's stuck with now. Modus operendi over there is to keep people working and "happy", so that's why they've turned to recycled scrap to keep productioon levels high. Scrap is a finite resource and traditional copper smelters still need copper concentrate to run with the scrap in the smelting process. This is China's short-term solution to keep production up, and keep smelters running. The supply of scrap is finite and sooner or later those stocks will become severely depleted, requiring even more raw copper concentrate to keep up with smelter production targets. Nothing in the long-term copper thesis suggests that we are somehow going to avoid a shortage as consumption trends will cause it to happen.
https://oilprice.com/Metals/Commodities/Chinas-Secret-Weapon-in-the-Global-Copper-War.html
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