Structural Changes in the Global Trade in Metals: Implications and Risks for the Competitiveness of the CIS Mining Companies

The paper investigates the structure of the global trade in metals. The authors reveal structural changes and analyse their consequences for the metallurgical and mining enterprises. The research demonstrates that the location of Chinese metallurgy in close proximity to seaports, and increase in efficiency of maritime transport has enabled China to eliminate the deficit in raw materials by importing metallurgical concentrate. The paper points to the competitiveness and sustainability of the model of foreign supply of metallurgy by examining the historical experience of the UK. The increased demand for non-home origin copper concentrate has led to a change in the structure of copper prices and a decline in the share of metallurgical conversion. As a result, development of mining capacities is becoming the key strategic priority. The authors conclude that high costs of imported raw materials to supply domestic metallurgical enterprises enhance the role of the companies' own sources of raw materials