Date: December 07, 2010Mine Production
Production at Escondida, the world’s largest copper mine,
will drop as much as 10 percent in the 12 monthsending in June because of lower grades, Melbourne-based BHP Billiton, the largest shareholder, said in astatement Aug. 25.The major copper reserves that are being produced today come from 100 year-old mines, with fewexceptions,which is indicating that possibility of reduction of production is high.
Aurubis AG, Europe’s largest smelter, is also predicting
higher demand next year as they are getting good ordersflow. Consumption in China, India, Brazil and the Middle East will expand at an average annual rate of 7 percentper capita through 2015.Demand may also be boosted if JPMorgan, BlackRock Inc. and ETF Securities Ltd. start exchange-traded productsbacked by the metal. Such funds could hold as much as 250,000 tons.
Above copper daily chart on MCX has formed the symmetrical triangle( cont.) chart pattern and given upsidebreakout. We are expecting it to touch Rs 408/410 levels in coming days.