Copper prices are going to remain under downward pressure as housing markets in the United States and China are slowing down, causing copper demand to shrink some.
Companies like Freeport-Mcmoran (NYSE:FCX) will be under pressure as well, as those with heavy copper exposure won't have anything to celebrate for some time to come, as there's nothing to suggest new housing starts in the U.S. will start to rise any time soon, as the tax credit has now ended.
And the Chinese property market is being cooled off in order to battle a potential bubble in the urban areas of the country, making copper demand there slower than expected not too long ago.
So for now, copper prices should fall, or at best, remain level, as there's nothing to indicate demand will rise in the near term.
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