José Luis Mardones Enrique Silva Cristian Martínez
Abstract
In recent years the rate of growth of copper consumption has drastically diminished. Overall economic growth has followed a slower course and present usage of copper in its traditional applications is now less intense than what has been in the past. Besides, there has not been a significant development of new end uses, and research and promotional efforts have shown little fruit. The aluminum industry has, on the contrary, enjoyed a very healthy rate of growth in consumption. This paper focuses on the comparative evolution of both industries from the standpoint of their market structures, the behavior of the companies involved, and the mutual relationships, within the proper historical perspective. First, it is attempted to show that the aluminum industry has traditionally been oriented to create demand for its product -new at the turn of this century and with no specific uses of its own in those years-, while copper seems to have been an industry driven by its demand and oriented to the development of productive sources. Secondly, the structural changes that the copper industry had to endure in the 60s and the 70s imply that demand does not drive the copper industry any longer, and therefore, a market-oriented business way is a "must" for copper producers. Finally, some comments regarding the possible future courses of action which producers like Codelco and others could adopt are presented.
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Publisher Info
Article provided by Instituto de Economía. Pontificia Universidad Católica de Chile. in its journal Cuadernos de Economía.
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