Copper: Fundamentally Fantastic

NEWS PROVIDED BY
OilPrice.com
Mar 30, 2017, 08:00 ET

Copper: Fundamentally Fantastic
While major miners like BHP Billiton, Rio Tinto, Glencore and Anglo saw the beginning of a turnaround in 2016, this year is about much more than just a slow recovery. This year is about a bull run, and here's why:

• China's copper demand is again on a boom swing. It happened in 2004/2005, when Shanghai inventories rose above the London Metal Exchange (LME) inventories, which is the world's standard. A massive bull market ensued-and the same thing is happening again, right now.
• Trump's $500-billion infrastructure plan has already driven copper prices up, and coupled with Chinese demand, this has real staying power.
• Continued workers' strikes at major copper mines are further boosting prices.
• The Fed raised key interest rates after a two-day policy meeting last week, and this has weighed on the dollar and benefitted copper prices, making it one of the best stocks to add to an investor portfolio right now.
• We're going to be short on supply, and the shortage is expected to become evident in the first half of this year, where we could see a repeat of the 'China boom' of 2005-or even better. The reality, we don't have another mega-project in the works, and the major deposits have already been found.

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