It's an interesting piece, right up to the point where he talks about the prices and the global ripples. At that point the author slipped and fell and hurt his head and will need hospitalization to recover.
Copper prices have been steadily falling, including in the last two weeks despite this event. And despite this event, worldwide production will outstrip demand in 2013.
Goldman Sachs said so less than an hour ago. May futures are down.
Quote:
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Originally Posted by wsj
NEW YORK—Prices of copper futures eased as Goldman Sachs GS -0.02% cut its price forecasts for the metal on mounting worries about economic growth in the world's top consumer.
The most-actively traded copper contract, for May delivery, recently traded down 1.75 cents, or 0.6%, to $3.131 a pound on the Comex division of the New York Mercantile Exchange.
Futures were on track for their lowest settlement since October 2011, slipping deeper into bear-market territory. A drop of 20% or more typically signifies a bear market, and futures on Friday settled down 21% from their February 2012 high of $3.97 a pound.
Goldman Sachs on Monday lowered its forecasts for copper prices this year, citing rising global stocks of the metal and mounting worries regarding China's growth outlook. The nation accounts for 40% of global copper consumption, and a reading last week on first-quarter economic activity showed growth unexpectedly slowed.
Goldman slashed its forecast for copper prices a year from now by 12%, to $3.17 a pound, from $3.62 a pound previously.
The cut "reflects market concerns about Chinese growth," Goldman analysts wrote. Still, they said economic activity there was stronger than the market was accounting for. Copper prices would likely rebound in the next three to six months, the analysts said, before pointing lower afterward as more mine production comes online.
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