Copper
Prices and Stocks
Real copper
prices have been in an overall declining trend.
As economies
emerge from recessions and grow, pent up industrial demand, and/or tightness
in supply, drives the price of copper upwards. Conversely, during economic
slowdowns, excess copper supply and/or lower consumer demand, cause
downward pressure on prices.
Throughout
these cycles, industry strives to improve its efficiency and cost structure
(mainly through technological improvements).
Holdings
in copper stocks can be expressed as weeks worth of refined consumption.
Many analysts
look at the build-up or draw- down of stocks as indicators of supply
and demand.
Stocks
of copper are maintained by producers, consumers, merchants, exchanges,
and in some instances, governments.
