Copper‘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.
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%.