US Copper Plate Prices Increase Amid Low Extraction Rate and Government Policies

In Mid-July, the price of Copper Plate mounted in the US spot market amid a lower extraction rate of copper from overseas mines of Chile, Peru, and Zambia. The downstream demand from the chemical industry seemed to be at a higher edge amid the intense accident at the Louisiana chemical plant that had been a major concern this week. The macroeconomic factors played a major role in the price hike of Copper Plate by implementing various Government stimuli from the USA and the overseas Chinese market. The buyers started placing large orders in the hope of better economic conditions.

The mining pace of feedstock Copper ore has been lingering as the chief overseas mining countries such as Chile, Peru, and Zambia face different issues hindering mining growth, resulting in the bearish price of Copper Plate. In Zambia, the mining activity has been on a lower edge as the Konkola Copper Mines (KCM) have faced financial difficulties as the capital injection has been dwindling. The Zambian government plans to increase buyers by resolving a dispute with the Indian Copper firm Vedanta which could increase the production of Copper Plate amid strong demand. Meanwhile, the Zambian government is trying to find new buyers for the Mopani Copper Mines to uplift the mining activity across the Zambian Copper market. Furthermore, in Chile, as the Copper mines have increased in mining royalties, they are now looking forward to a raise in inducements. The increased energy cost and lack of proper government policies are creating hurdles in the path of Copper Plate production to develop the renewable energy sector.

Additionally, the copper expansion project in Peru, under the Chinese government, has been at a plunging rate as the Las Bambas copper mine in Peru has been facing issues of protest from neighboring communities, because of which the military is buffering the extraction process. The project to mitigate depletion has been on a long-term delay amid a lack of negotiation and delay in agreement signings. The ripple effect of slow extraction rate across major Copper mines created a depletion of feedstock inventory level leading to increased cost support for producing Copper plates.

The heat exchangers used in the Chemical factory show optimistic market sentiment and will increase the demand for the Copper Plate across the USA. Meanwhile, a major accident at the Dow chemical plant in Louisiana, USA, has been a severe concern this week as the GLYCOL-2 unit caught fire at midnight on Friday, which contained Ethylene oxide, a major flammable component. The fire caused the explosion, and the whole area got covered in fumes. Fortunately, no causalities were observed. The exposure to Ethylene Oxide is said to be carcinogenic, which provoked the local authorities to shift about 350 local households in the nearby region immediately. Additionally, for safety measures, the Highway between Sid Richardson and Bayou Jacob was also kept closed for lower exposure to harmful gases. The company continuously conducts air quality inspections across the neighboring area and the Mississippi River facility. This major explosion will increase the demand for the Copper Plate made heat exchangers during the re-establishment of the plant setup.

According to ChemAnalyst, the price of the Copper Plate will show a rising trend as the Copper feedstock extraction rate decreases in the major overseas nations. The demand for Copper Plates will increase from the downstream chemical industries. The improved economic policies from the USA and overseas China will uplift the Copper Plate market sentiments. The buyers have positive sentiments about the USA Copper Plate spot market.