The Economy, I don't get it
26 May 2006, 08:17 AM
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The Economy, I don't get it
Reference to this article
http://news.ft.com/cms/s/17e16dca-ec...0779e2340.html
The article states that the fact that they can't extract copper quick enough puts the price up.
They also state that there copper industry has given them a budget surplus. So why do they want to rush expanding their copper industry?
Surely its better to keep production down and get more money for the same amount of copper over a longer period, then to get less money for lots of copper but quicker.
http://news.ft.com/cms/s/17e16dca-ec...0779e2340.html
The article states that the fact that they can't extract copper quick enough puts the price up.
They also state that there copper industry has given them a budget surplus. So why do they want to rush expanding their copper industry?
Surely its better to keep production down and get more money for the same amount of copper over a longer period, then to get less money for lots of copper but quicker.
Last edited by farmer1; 26 May 2006 at 08:22 AM.
26 May 2006, 08:41 AM
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If you can't keep up with demand people will seek out an alternative product. Instead of copper pipes people can use plastic for example, once people make the change, they may be inclined not to return so your long term prospects don't looks so good.
26 May 2006, 10:14 AM
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Originally Posted by OllyK
If you can't keep up with demand people will seek out an alternative product. Instead of copper pipes people can use plastic for example, once people make the change, they may be inclined not to return so your long term prospects don't looks so good.
And apparently India and China are demanding much more now that their economies are exanding extremely quickly.
Dave
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