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25 March 2014

Political motives in the field of extraction of non-ferrous metals

Politics and the economy always go hand in hand, therefore, as a rule, any, public unrest in a particular country almost always has the most negative impact on its economic well-being. Ukraine, which recently does not come off the front pages of newspapers and television screens in many countries of the world, once again confirmed this pattern. So fragmented and not very understandable information about the events in the Crimea did not fail to affect the stock market of non-ferrous metals, among which, first of all, the copper sector suffers. According to the estimations of well-known international analysts, this state of affairs can not but disturb and is likely to have a negative impact on the work of dealers. To the additional unrest on the metal exchange led the decision of the Chinese government to change the borders of the corridor of the parity exchange rate of the national currency. If earlier the given indicator made one percent, now the figure will rise at least twice. All these events lead to unrest on the stock exchange and most of all affect the weakest exchange sectors. For example, the trade in copper, which has not been so intense in recent times, completely froze in the light of the recent world events. Prices for non-ferrous metals continue to fall with an enviable consistency. A further decline in the cost of certain non-ferrous metals could undermine the economies of many small developing countries. So the copper issue is most concerned about the government of Zambia. If the mining complex of this country has worked successfully and even received substantial profits, despite the fall in prices on the metal market, if the price of copper falls, below the limit of five thousand US dollars per ton, the Zambian production workers will begin to work at a loss.

Some analysts support the optimistic mood, not wanting to overreact the trade process, however, according to many experts, such a drop in the price of the color market's equivalent will continue for quite a long time. If now many production of the color sector are still balancing on the brink of loss, they will soon begin to reduce their capacities, leaving workers behind the unemployment line. The speedy normalization of the political situation in a number of states can contribute to a change in the plight of the metal market and the coping of crisis phenomena in the shortest possible time.

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