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COPPER'S PROSPECTS

News and Information Relative To Copper
and the Copper Industry



Updated 29 January, 2017


[Most Recent Quotes from www.kitco.com] [Most Recent Quotes from www.kitco.com]


**Updates On Copper**



January 29, 2017
Charles Kubach, Mine-Engineer.Com

Copper in 2017?

Well, since China accounted for consuming 46% of the 2016 produced copper, they remain the largest player in the copper game. Who knows what will occur in the Big East. China will either drop further into economic retrenchment, or will muddle along, perhaps pulling themselves up a few rungs on the recovery ladder in 2017. Roll the dice on this one.

The rest of the world is muddling along, but the US may well have a economic expansion in 2017, thanks to government that understands business, instead of government where the business is the enemy, and is seen as being only good for paying taxes and fees.

Since copper is directly related to economic activity, and in particular, manufacturing and construction, baring snake eyes in China, I think it may be a year where it is relatively flat, or increases in price 10% to 20%. Today's copper price is $2.66/pound. Last year I predicted $3/pound, 12% off. It will take economic recovery to crack and remain above $3/pound, and the better the recovery, the higher above $3/pound it will go. With too much free money and negative interest rates being the fashion of central bankers, it does not bode well for much economic expansion, globally, in 2017.



Tuesday, 14 July, 2015
By: Charles Kubach, Mine-Engineer.Com


Copper closed 7-14-2015, at $2.54/Lb., near its 6 year low. China, the worlds consumer of 40% of world copper, and their sluggish economy is the primary cause of the copper woes. Meanwhile, China is expected to have a annual growth rate just below 7%, which most industrialized countries would envy. China's government has set a target growth rate of 7% for 2015, which if they can keep it close to that figure, will be quite good in this sluggish economic world.

With many copper mining companies in deep trouble, due to massive debt, taken on with pie in the sky copper projections, and struggling to reduce their debt load in a low copper price environment. This includes selling properties, shutting down high cost properties and cutting back on marginal properties.

It would appear, at this time, a high growth rate for copper is unlikely in the near term, and a reduction of supply is about the only thing that will bring about better prices for copper. Copper's use is directly related to economic growth, manufacturing and construction, and all those outlets are struggling worldwide, currently.


Saturday, 6 June, 2015
By: Charles Kubach, Mine-Engineer.Com

Metallic commodities continue their lengthy slump, as speculators await news of China's economy next week. Good news might start a bit of upside in the copper futures market, which closed at $2.69/lb Friday. While China is holding the factory output at good time levels, a flood of products is reducing prices for "Made In China" worldwide, more so than the trillions of free money by various government stimulus programs. Perhaps this is China's stab at "regulating" their buying countries economies. While they do not need us, they need our money.

Unfortunately, good news is not expected next week, as China struggles with their economy, so the demand for copper is not expected to rise in the near future, at least that is what my crystal ball is saying.

Domestic copper companies may have to await for a change in Presidents, to a sensible Republican, before the economy of the US takes off, as the Communist Democrat Party of Clinton and Obama wreak havoc on the American Way of Life. Our dictator ignores the Constitution and the laws of the elected Legislative Branch, to push the Communist Democrat Agenda down Americans throats by dictatorial decree. Never has so mush ignorant babble emanated from the White House. The Supreme Court appears to have no interest in upholding the US Constitution. So, again, it is up to the people to make a change at the top, and put a sensible Republican in office to steer this nation back to the path of Greatness.


Copper's China Factor Diminishes A Bit

For the past 5 or so years, China has played the major role in copper's expansion and good times. It would appear, that with the rumored warehouses full of copper, used possibly to secure numerous loans, and the fact that China is paying less premium than other destinations, would indicate that China is taking a copper breather. With copper currently bouncing around $3.15/pound ($6,930/MTon), China is paying a 1% premium for copper shipped to its ports. The US is paying a 2.3% premium, which would lead one to think the US economy is more robust that China's, currently. At least as far as copper is concerned, which involves construction and electronic machinery production. A premium payment means those paying receive delivery before those that do not pay a premium.

With China gulping up 300,000 metric tons of copper per month, it is the largest consumer of the metal, and a slowdown in their use of copper would mean a lower copper price down the road. Forecasters are predicting that copper could drop to $3.00/pound ($6,600/Mton) by the end of 2014. This is the break even point for many operating copper mines and could result in reduced operations or a few mines shut down until prices improve. If prices drop to under $3/pound it will definitely close some of the higher cost operations, reducing global supply, which will eventually increase prices down the road.

**Update On Copper**



Monday, 2 Sep., 2013
By: Charles Kubach, Mine-Engineer.Com



With the favorable manufacturing news coming out of China, it appears that their economy is starting to rev up a bit, breathing some life into copper, which has been languishing around the low $3/pound range for a while. It looks like copper will do better for the remainder of the year, and probably into 2014, as well, if China continues to stabilize their economic problems. The Euro zone is like wise showing some economic hope, as they patch up the once sinking Euro ship. Asia, as a whole is in the best shape, economically, and all of this bodes well for copper. The economies are not out of the bear woods, yet though, as the US has yet to bear the burden of Obama Care and other onerous government sponsored dead weights. There are some good signs, globally, though and that is good news for commodities in general.