Asset Restructuring in the Metals Industry—The Case of Copper∗

Abstract

Asset restructuring in the metals industry is illustrated by considering the case of copper. Over the past decade, the rate of growth in demand has slowed. The ownership structure of the industry changed as a result of the nationalization policies of the 1970s followed by the rationalization movement of the 1980s and the disintegration with respect to downstream fabrication operations. Trading patterns have been affected by the emergence of the Japanese industry. Cost/price relationship and the nature of the competition arc also discussed along with the implications that changes of the structure of the industry will have on the future of the business.