Industrial raw materials
On global markets the demand for industrial metals is at a constantly high level. The economy of individual countries, and in particular of the largest giants, i.e. the USA and China, are recovering from losses after the pandemic threats, and the demand for industrial raw materials is slowly increasing.
And although specialists from financial institutions have announced much worse scenarios, that the demand for resources such as oil will be significantly slowed down, in the case of copper it will only be postponed. On global markets, copper remains stable after a short drop. In comparison with other resources, especially oil, the costs of metal storage are not so high and there is no risk of exhaustion of the storage capacity of their stocks.
Copper worth its weight in gold ….
Copper is a metal that has been used by man for hundreds of thousands of years. Once used for the production of weapons and jewellery, today it is used primarily in electric motors and cables. Copper is an important commodity on the raw material market. Copper futures contracts are typically concluded at 25 thousand pounds of this metal. Orotal Commodities Trading SA prospects for, buys, transports and processes minerals and ores, increasing their value. It is also a regular supplier of copper, including refined copper. Orotal experts assume that the price rebound will be maintained in the second half of 2020. The resumption of economic activity in China and the growing demand for this raw material support copper prices.
China and the United States are the two main recipients of copper. And it is the economic situation of China that largely determines the demand for this raw material, because this giant sucks up as much as 50% of global demand.
The price of copper is also affected by the escalation of the conflict between the USA and China. Geopolitics is becoming the main unknown. This factor is becoming increasingly important, and every active investor and commodities trading company closely examines intercontinental relations in order to wisely manoeuvre in the sea of information, much of it “fake news”. Orotal works well here as an international expert who, thanks to their knowledge and experience, navigates in such complex market realities and remains up to date with current events to support and advise their clients.
So, what resources to invest in?
According to experts, gold and oil are still the most important resources. The year 2019 was particularly successful for them, while the current year – 2020 – will slowly make up for losses after the unexpected pandemic. Price listings of these raw materials are the result of three factors: the economic environment, the geopolitical situation and a surplus or deficit of supply with regard to demand, and these are the factors that OROTAL focus on as a flexible and reliable trading partner.