§ Mr. Skeetasked the Secretary of State for Trade and Industry to what extent he estimates that the rise in copper price has been due to the successive devaluation of the dollar and the float down of the £ sterling; and whether he will encourage industry to make provision for the holding of higher stocks to deal with the cyclical pattern of supply and demand.
§ Mr. Anthony GrantThe main reason for the rise in world copper prices since the end of 1972 has been the strong rise in world demand associated with the general increase in the rate of economic expansion in industrialised countries. Some major producers have also experienced difficulties in maintaining supplies. Currency uncertainties, including 255W changes in dollar and sterling exchange rates, have been a further subsidiary factor in the pressure on prices, although this cannot be rapidly quantified. Where it is possible to forecast short-term movements in supply and demand, an appropriate adjustment of stock levels is to be encouraged; although the level must also be judged in commercial terms in view of the costs involved in maintaining high stock levels.
§ Mr. Skeetasked the Secretary of State for Trade and Industry what are the present United Kingdom stocks of copper compared with figures for the past three years; and what estimate he has of how far demand in the United Kingdom exceeds supply.
§ Mr. Anthony GrantAccording to the latest available information United Kingdom stocks of copper, with comparable figures for 1970 to 1972, are as follows:
The running down of the abnormally high level of stocks built up during 1972 suggests that demand has exceeded supply in recent months.
Stocks at end of May (metric tons) 1970 19,891 1971 42,790 1972 69,953 1973 44,456