REDUCE OF COPPER PRICES FORMS NEW EXPECTATIONS FOR ARMENIAN MANUFACTURERS

13:01, 9 March, 2015

YEREVAN, MARCH 9, ARMENPRESS. The continuous reduce of prices of
the copper in the international markets has compelled the Armenian
producers to renew their long-term projects. Although they have
positive expectations about the stabilization of prices, but recently
they have appeared under pressure to achieve their industrial rates
and eliminate needless costs.

On the other hand, the manufacturers admit, that the current level
of copper prices still allows them to operate in the commercial
zone. It should be noted, if in 2012 the copper per ton had exceeded
more than $ 8,000, but in 2013 costs 7,000 dollars. Last year the
price of copper per ton fall to $ 6,000, and this year reached up to
5800 dollars. The impact of the observed reduction of colored metals
market on the economy of Armenia is considerable, because the mining
industry occupies an area of around 13 percent, and the production and
cultivating of the copper provide about 5 percent of GDP in Armenia.

In order to clarify the formed sentiments among the businessman,
“ARMENPRESS” questioned the large companies, which are involved in
the copper production. The response came only from two companies;
“Teghout” and “Dundee Precious Metals Kapan” CJSC.

As “Armenpress” reports”, “Dundee Precious Metals Kapan” CJSC
particularly underscored: “Lately they are following the markets
carefully, because the decline of prices seriously affects their
income. the mining companies are implementing activities to prevent
the decline of income in Kapan, in Canada and around the world.

Apparently, we are under additional pressure, in order to achieve
safely our production rates and continue eliminating unnecessary
costs. The market factors are beyond our control, and we do not spend
time to predict the changes of the market. Our efforts should be
directed at the managing of those factors (productivity, costs), which
are under our control. As a manufacturer business of raw material,
we cannot have an effect on the market’s conditions. Thus, those are
the points, that we can do to get safely to our production rates and
at the same time reducing unnecessary costs.”

Armen Yerganyan, the Head of Development Department of the Ministry
of Economy, summed up the situation. The decline of prices affects
the income of companies, but the extent of manufacturing have not
tendency to decrease.