Bottom Is Falling Out of Copper Prices

Copper Jun 25, 2013 No Comments

CopperCopper‘s world is coming apart. The price has fallen 16% so far this year and is 34% below February 2011 all-time closing high. This isn’t just a case of slowing economic growth. The global forces propelling the metals stunning rise over the past decade are shifting. Copper’s supercycle is entering its downhill run.

Copper‘s surge reflected flat supply running into surging demand, mainly from China. Copper spent much of the period from 2005 to 2012 at levels at least double the marginal cost of production.

More copper is becoming available. Deutsche Bank and Macquarie expect copper supply between 2013 and 2015 to exceed demand by an average of roughly 500,000 metric tons a year—higher than the surplus in 2009, when the average price fell 26%.

via Bottom Is Falling Out of Copper Prices – WSJ.com

Rod Sherkin

Rod is a former senior executive, responsible for Purchasing, for both Pillsbury and Ball Packaging back in the 80’s and 90’s. Since then, he has continued to work in the Purchasing field as both a consultant and founder of the website Propurchaser.com.

Leave a Reply

Your email address will not be published. Required fields are marked *