I wouldn't get too excited. I don't think Copper will boom, but it should settle into a range at these levels for a couple of years. Metals X should however recover some share price falls when production ramps up, though I'm not expecting too much, perhaps back to 75c over the next 6 months.
(from - Investor's Business Daily - 11 July 2018)
Prices of copper, which is known as Dr. Copper for the metal's link to the economic cycle, fell 3% on Wednesday to $2.75 a pound and are now down nearly 20% from June highs.
The pace of global growth has peaked and "a deceleration phase now lies ahead," Nomura economists wrote this week. They forecast global growth of 4.0% in 2018 will slow to 3.7% in 2019, with risks to the downside.
Global trade tensions certainly share the blame, but Nomura cites a range of negative factors, including "a growth slowdown in China," European political uncertainty, higher oil prices, Fed interest-rate hikes and broader emerging-market fragility.
The rising dollar, which is at least partly a byproduct of Fed rate hikes, has also put downward pressure on commodity prices and growth in emerging markets with dollar-denominated debts.
Gw
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