Freeport-McMoRan (NYSE:FCX) Chief Executive Officer Richard Adkerson said global demand for copper is rising, and investors seem to agree, as the price of copper has risen for two days in a row on the growing demand.
Adkerson reiterated that the emerging middle class in China with more income will drive the use of copper, and the result has been an increase in copper prices over the last year of 71 percent.
With concerns over the hot Chinese market moving officials in the country to cool of the economy and housing market, some think copper demand could be cut back in response to those decisions, but it'll depend more on Chinese consumers as to whether that will be the case.
Momentum in China alone seems to guarantee copper prices will be strong in 2010, but if major changes do cool of China, then everyone will have to re-evaluate where prices will go if demand falters.
On a conference call concerning quarterly results, Adkerson added that products the company sells seem to be improving in developing countries, which could result in increasing mine output in response.
Copper Prices
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