Copper prices holding up
The biggest reason why commodity prices have so far held up as a strong reason for investment in mining is the price of copper.
If US electricity markets have been any indicator, the impact of the surge in price from February’s $26.66 a thousandweight increase더킹카지노 to today’s $31.78 is starting to show in electricity-related infrastructure investment.
According to data from the Energy Information Administration (EIA), electricity-related infrastructure spending dropped 12.2% in February from a year earlier to $3.85 billion.
Energy and coal sectors also posted substantial year-over-year declines in the second quarter.
The decline was in both coal and oil-related infrastructure, in line with recent declines.
In the coal and oil sector, spending plunged 16% from a year earlier to $14.9 billion, from 바카라사이트$16.2 billion in January.
In addition, there were two negative declines in infrastructure spending, in line with a year-over-year drop in new investment.
Coal and oil industries have seen a rapid shift to gas or renewables, but the shift is not complete and this trend will likely reverse as these industries expand capacity to increase electricity supplies in the future.
Energy companies will likely seek to continue operating as a diversified industry over the longer term.
New orders will largely keep coal and oil industries in business, but as the transition to cheaper and cleaner power becomes more and more prominent, these industries may struggle to stay within their margins even with these reductions.
Investment in coal and oil capacity will probably continue to decline.
Overall, the sector has been enjoying a strong resurgence of energy spending, as evidenced by the $6.75 billion increase in new investment in coal and oil equipment in February.
Other energy projects as well as the dollar, which have helped spur energy spending are expected to slow, at least in first quarter GDP growth, while the US still continues to face a steep debt load.
Energy is likely to remain the larges카지노 사이트t driving force of the GDP growth in 2014.