Author: Paul Ploumis
04 Dec 2014 Last updated at 06:18:17 GMT
MEXICO CITY (Scrap Monster): The Chief Executive Officer of one of the world's largest copper producing companies, stated that, the hiking demand for copper from China, and the economic developments in other countries of the world, would keep the price of the metal strong for the coming years.
The Chief Executive Officer at the Southern Copper Corp, a company owned by the Gupo Mexico, Oscar Gonzalez Rocha, anticipates that, the value of copper, by the next year, would be averaged to about 3 dollars per pound. As the demand for the metal in China is strong. Even so the expectation of the company is lower than the anticipated average for this year, 3.11 dollars per pound. The average value for copper in the year 2013 was 3.43 dollars per pound.
The CEO of the company in an interview conducted at the headquarters of the company, located in Lima, stated that the Chinese buyers would continue to buy copper. This would help to keep the price of the commodity in balance. Even if it is not sure that the price of copper would not return to 4 dollars per pound, it is pretty sure that the price would stay stable at 3 dollars per pound.
Many of the copper mines, including Southern Copper, are badly affected by the declining price of copper. The company announced that its net annual profit for this year to be 985 million dollars, and the net income of the company by the end of this year as, 1.3 billion dollars, which is a lower sum compared to that of the net income in the year 2013, which was 1.6 billion dollars.
The company declared that, in the coming years, it would fall a little short due to the decline in the price of copper. For the next year the, increase in the production of copper and decline in the price of fuel, will help to rejuvenate the declined value of copper.