Copper Prices Expected to Rebound by Year-End


 
 
06:23 09/12/2018

Copper stocks are severely oversold. But with time, they’re likely to bounce back on heavy demand and cooling trade tensions. In fact, the U.S. just proposed another round of trade talks with Beijing to avoid further escalation. If accepted, it could help reduce tensions between the two countries after President Trump threatened another $200 billion tariff. Just the idea of cooling tensions was enough to send copper prices higher on the day. But we’re not the only ones that think so. According to the International Business Times, copper prices are likely to rally by year-end, as global trade issues recede, and as demand picks up steam As they report: “Eleni Joannides, principal analyst for copper at Wood Mackenzie, pointed out that the demand in China remains firm after the country announced a ban on the import of category-7 copper scrap and the 25 percent tariff on imports from the U.S.” In addition, “Casper Burgering, senior sector economist at ABN Amro, expects the emotions that weighed on copper ‘to cool again, allowing fundamental trends – such as supply and demand – to regain the upper hand.’”


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