China Copper
According to the largest metal-trading company in China, Minmetals Nonferrous Metals Co., Chinese imports of copper in 2010 could be half of what they were in 2009, setting up a potential plunge in copper prices if that assessment is true.
The Chinese are winding down the spending on infrastructure from the stimulus money, and also tightening up their credit somewhat to cool down growth.
Estimates are refined copper imports may stand at about 1.5 million metric tons for 2010, a 53 percent decrease for 2009. That is more the norm on real demand, as it's close to the 2008 numbers of 1.46 million tons of refined copper imported.
In the Chinese markets copper is mostly in a contango where buyers can get it cheaper right now than they can in the intermediate term.
Another reason for cutting back on copper imports by China is they stockpiled far more than they needed last year, and numerous empty buildings built from the artificial stimulus are largely empty and standing there with no immediate use, making more building in that sector largely irrelevant and not fueled by market forces.
China Copper
Showing posts with label Investing Copper. Show all posts
Showing posts with label Investing Copper. Show all posts
Thursday, February 11, 2010
Saturday, November 14, 2009
Where are Copper Prices Heading?
Copper Prices
The interference by the government in the economy has made it more difficult to know which direction copper prices will go, as the articial propping up of certain industries can also give a temporary bump up in prices.
Copper is of course one of the best indicators of the economy, as it signals whether people are buying or hoarding their cash.
Copper prices exploded upwards in 2009, but have flattened out since around August at about $2.80 to $3.00 a pound. During the summer months copper price per pound fell to around $2.20.
There is no doubt there will be a big move in copper prices sometime soon, but the question is whether that move will be up or down.
I think we could use the $2.20 a pound lows in the summer of 2009 as a sign that demand has slackened and people aren't spending. On the other hand, if prices start to rise well above $3.00 a pound, say like $3.20 or more, it would probably be a good indication that inflation is rearing its ugly head and prices will continue to shoot up.
Because we don't know how badly the government will continue to print money, copper prices are a good indicator of how much they're really doing it and how people are responding.
Copper Prices
The interference by the government in the economy has made it more difficult to know which direction copper prices will go, as the articial propping up of certain industries can also give a temporary bump up in prices.
Copper is of course one of the best indicators of the economy, as it signals whether people are buying or hoarding their cash.
Copper prices exploded upwards in 2009, but have flattened out since around August at about $2.80 to $3.00 a pound. During the summer months copper price per pound fell to around $2.20.
There is no doubt there will be a big move in copper prices sometime soon, but the question is whether that move will be up or down.
I think we could use the $2.20 a pound lows in the summer of 2009 as a sign that demand has slackened and people aren't spending. On the other hand, if prices start to rise well above $3.00 a pound, say like $3.20 or more, it would probably be a good indication that inflation is rearing its ugly head and prices will continue to shoot up.
Because we don't know how badly the government will continue to print money, copper prices are a good indicator of how much they're really doing it and how people are responding.
Copper Prices
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