Dr. Copper Takes a Breather

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The price of copper has come down from the new all-time high that it reached earlier in the day, as a short-covering rally faded. But the metal with a PhD in economics (that’s not saying much, actually) still thinks that the future is bright for the global economy, with demand likely to exceed supply in the year ahead despite all those rolls of copper wire that remain tucked away on Chinese pig farms, as detailed here at the old blog some time ago.

It’s hard to say what impact any slowdown in Chinese growth will have on metals markets, but, with warehouse supplies tumbling in London and a supply deficit growing, my guess is that, if the price does go down from here, it won’t go down by much.

Disclosure: No position