If copper keeps on retreating and halves in price as forecast by this article then Oxiana will be slaughtered...literally...off to the knackery!! ....................................................................
The price of copper had tumbled for three weeks in a row on signs of slowing U.S. demand. The metal has slumped 29 percent from a record $4.04 a pound in mid-May. Copper still has gained 41 percent this year, partly because of supply disruptions in the first half.
A futures contract is an obligation to buy or sell a commodity at fixed price for delivery by a specific date. Comex was closed yesterday for the Christmas holiday.
Today's gain ``is not indicative of anything'' because of low trading volume, said David Threlkeld, president of Resolved Inc. in Scottsdale, Arizona. ``The copper price is too high and may decline as much as 50 percent next year because of increasing supply and slowing demand.''
Economic expansion in the U.S., the world's second-largest copper user, slowed in the third quarter to a 2 percent annual rate after home building fell the most in 15 years. Imports by China, the world's biggest copper user, have fallen this year because of high prices.
Copper prices have gained more than fourfold in the past five years, partly on demand from China.
OXR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
