Unexpected mining cutbacks point to copper price recovery
With mines producing less, any surplus is expected to be soaked up by top user China, say analysts
London
COPPER mines from Australia to Zambia are confounding forecasters as slumping prices and mine disruptions threaten to erase a global production surplus.
Companies including BHP Billiton Ltd and Rio Tinto Group have reported accidents and equipment breakdowns while announcing 2015 spending cuts that Macquarie Group Ltd estimates at US$20 billion. The unexpected reductions mean mines may produce less, with any excess gobbled up by expanding government stockpiles in China, the top user, Bloomberg surveys of analysts showed.
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