RE: Reason for copper fall?9 Jul 2018 23:43
“The bull market has only started,” says Leigh Goehring, managing partner at Goehring & Rozencwajg Associates. “Strong demand from Asian countries is what’s going to push copper prices higher, and this is before we even begin to talk about renewables and [their] impact on global copper consumption.” Renewable energy sources like wind and solar require lots of copper for their equipment.
He believes a “huge bull market,” led by extremely strong demand and emerging problems surrounding global copper supply, is likely to resume shortly and play out in “multiple stages over the next five to 10 years.”
The current bull market started after copper prices hit bottom in January 2016 at a little below $2, and it could see prices trade at $10 or more before it’s over, says Goehring. For now, however, copper prices trade about 1% lower year to date.