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Dambisa Moyo on resource scarcity, and China’s race for deals…

Posted by nexvucapital on November 25, 2012

“Some industrial commodities, including copper, have mounting supply and demand imbalances. Consider the top three sectors using copper: electrical and electronic (42 per cent), construction (28 per cent), and transportation (12 per cent). The three billion new middle-class people by 2030 will want computers, TVs, washing machines, cellphones and dishwashers.They will live in new buildings and buy new cars. All of that means a heavy demand for copper, a mineral that is costly to extract and in increasingly short supply. Since 2003, copper inventories have declined 32 per cent and the price has increased by almost 400 per cent. And mining businesses will have to go much farther afield to more risky countries and terrains in order to source it. This is a preview of the mounting imbalance between supply and demand.”

Source: http://www2.macleans.ca/2012/06/04/dambisa-moyo-on-resource-scarcity-and-chinas-race-for-deals/

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