With Copper Stocks Tapped Out, Banks See a 2020 Price Spike, Yvonne Yue Li, January 12th 2020
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Copper, a malleable conductor of both heat and electricity, serves as a barometer of global economies because of its broad use in wiring and motors, construction materials, electronics, and in vehicles for everything from radiators and connectors to brakes and bearings.
Copper’s tight supply situation was masked by the trade tensions, according to Darwei Kung, head of commodities at DWS Investment Management Americas Inc., who is bullish on the metal. Now with a preliminary truce between the countries, copper is looking “positive” this year, he said.
But it’s no slam dunk. Traders and analysts surveyed by Bloomberg last week remained neutral on copper, awaiting the signing of the so-called phase-one trade deal between the U.S. and China, as well as further clarity in the U.S.-Iran standoff as Chinese fuel supplies could be substantially impacted.
(Bloomberg) — The price of copper, a barometer for the global economy, could jump in 2020 with capital spending for new production down and stockpiles tapped out at a time when U.S.-China trade tensions are easing. The threat of a long trade war limited mining activity and kept manufacturers from adding to their stocks.