Economy minister: Armenian companies to face difficulties because of developments at copper market
20.03.2020,
14:21
In the long run, Armenian enterprises may find themselves in difficult conditions because of the current situation at the copper market, Armenian Economy Minister Tigran Khachatryan said Thursday at a press conference.
YEREVAN, March 20. /ARKA/. In the long run, Armenian enterprises may find themselves in difficult conditions because of the current situation at the copper market, Armenian Economy Minister Tigran Khachatryan said Thursday at a press conference.
In his words, in the new economic realities, the first blow was taken by three industries: companies providing tourism and related services, some exporting companies with the main market in Russia and those engaged in the extraction and export of copper, the price of which has fallen from $ 6 thousand to $ 4.8 thousand per 1 ton since the beginning of the year.
“This is a significantly low price. In the export structure of Armenia, a rather large share comes on copper concentrate. During the past year, if I am not mistaken, copper concentrate in the amount exceeding $ 550 million dollars in last year's prices were exported over the last year,” the minister said.
He found it difficult to say how different companies will react to such a fall in copper prices, because each of them has certain peculiarities in terms of costs per 1 ton of concentrate.
“However, it is obvious that in the long run this price creates very difficult conditions for all companies,” he said.
In this regard, Khachatryan expressed confidence that each company is considering options for reorganizing its expenses in the new conditions in order to be able to confront challenges more reliably.
"However, on the whole, the price of $ 4.8 thousand is much lower than the average market conditions that are necessary for the activities of any Armenian company," the minister added. -0-
In his words, in the new economic realities, the first blow was taken by three industries: companies providing tourism and related services, some exporting companies with the main market in Russia and those engaged in the extraction and export of copper, the price of which has fallen from $ 6 thousand to $ 4.8 thousand per 1 ton since the beginning of the year.
“This is a significantly low price. In the export structure of Armenia, a rather large share comes on copper concentrate. During the past year, if I am not mistaken, copper concentrate in the amount exceeding $ 550 million dollars in last year's prices were exported over the last year,” the minister said.
He found it difficult to say how different companies will react to such a fall in copper prices, because each of them has certain peculiarities in terms of costs per 1 ton of concentrate.
“However, it is obvious that in the long run this price creates very difficult conditions for all companies,” he said.
In this regard, Khachatryan expressed confidence that each company is considering options for reorganizing its expenses in the new conditions in order to be able to confront challenges more reliably.
"However, on the whole, the price of $ 4.8 thousand is much lower than the average market conditions that are necessary for the activities of any Armenian company," the minister added. -0-
