More Than Just China Driving Copper Prices, Clyde Russell

In a column for Reuters, Clyde Russell suggested that China may lose its position as the main driver for copper prices, at least for the short term. Russell drew attention to the importance of demand from the rest of the world, which still makes up 55 percent of copper demand.

As quoted in the publication:

The point is that considerable uncertainty exists over copper’s direction and much of that comes down to whatever view is held about the economic outlook for China, which consumes roughly 45 percent of the world’s copper.

While this is obviously a huge chunk of the market, it still means that the other 55 percent could exert a bigger influence, especially if its demand trend is changing.

London copper prices gained 3.4 percent between Aug. 14 and Tuesday’s close of $7,054 a tonne (1.0123 ton), although they are still down 4.2 percent since the start of the year.

The recent gains have largely been attributed to an improving outlook for growth in the United States and hopes that Europe may take steps to stimulate its struggling economies.

Click here to read the full Reuters article.