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LE 360 website reported that Moroccan cable industry companies are facing the risk of soaring copper prices and shortage of finished products.
The president of the Moroccan National Power Electronics Association, Ali El Harty, said that the international copper price has soared in recent weeks and the supply difficulties in the international market have put pressure on Moroccan cable industry companies.
The price of copper on the London Metal Exchange reached US$10,300/ton, breaking its highest record since February 2011. Since the beginning of this year, international industrial production has recovered rapidly, and the demand for copper has greatly increased, causing its price to more than double.
Harty said that Moroccan manufacturers, installers and distributors are facing risks and challenges due to the increase in copper prices. Among them, installers are the most affected.
As part of the contract was signed a year ago, the contract price is about US$4,500-5,000/ton, but the current price has doubled. This puts those operators who rely mainly on cable activities at risk of bankruptcy.
Morocco's copper is all dependent on imports, especially from Chile (the world's largest copper mine producer).
However, due to the epidemic, Chile's copper mine has been closed for more than four months. According to Bank of America’s latest forecast, by 2025, the price of copper will reach US$20,000/ton.
