The shortage of materials in copper market is more serious than expected
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This is mainly due to the possible disruption of Chinese demand. China accounts for nearly half of the world's copper consumption, and this year's global total consumption is estimated at around 24 million tons.
However, the impact on Chile's supply, Zambia's political and power problems and China's restrictions on copper scrap imports are expected to tighten copper supply in the second half of 2019.
"The supply gap will be higher than you expected two months ago," said a fund manager who specializes in metals. "The physical market has seen this."
There may be a strike at the Chuquicamata mine of Codelco, the state-owned copper company, where three unions refused to accept the company's final offer for a new contract.
Codelco, the world's largest copper producer, produced 1678,000 tons of copper in its own mines last year.
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