Posted 30 May 2014
Copper has just hit the lowest average price for a month since June 2010, with worldwide copper stocks also down.
We will undoubtedly see more fluctuations throughout the year but most of the long term forecasts talk of stagnation with few big surprises.
One factor that can make a significant difference is the US Dollar. All copper exchanges around the world are heavily influenced by the Dollar, even the London Metal Exchange (LME) is quoted in Dollars. The US Dollar is very weak at the moment which is holding copper down and therefore the price of finished cables.
Presumably any increased demand from world recovery will be matched by increased production or undeclared stocks being filtered into the market.
Mine owners don’t want to dig the stuff out of the ground only to find over-supply makes prices drop. Annual usage is around 20 million tons with a little less than a fifth of this coming from recycling.