Buy This Copper Producer on Lack of New Discoveries
With questions regarding China's demand, most commodities collapsed in the last year but copper prices have held up relatively well. A couple of factors have contributed to the resilient prices of copper outside of the supply situation at the LME. For one, China's demand continues to grow at 10% per year while the country accounts for 40% of the global demand. The other is that new copper deposits haven't been found in decades.
So while copper inventories in China and the LME have remained high over the last year, copper prices have maintained a strong stance above $3 per lb.One of the main reasons is that regardless of inventories, copper remains one of the most difficult commodities to mine and find new supplies.
Read the full article here.
Disclaimer: No positions mentioned. Please review the disclaimer page for more details.