MARKET UPDATE - CME
TAKING THE PULSE OF DR. COPPER FOR 2019
Copper prices could be driven by a confluence of factors in 2019. Among them being the pace of growth in China, which has been taking on more debt to stimulate the economy. The strength of the U.S. dollar in relation to the Fed’s rate hikes, growing budget deficit, Brexit and Italy’s debt could also play pivotal roles.
Highlights
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Copper rose 72% in 2016-17 on Chinese growth but is down 18% so far in 2018
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Supply likely continued to grow in 2018 as mining profitability remained strong
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Price trend for 2019 will depend on Chinese demand, U.S. dollar strength
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Brexit outcome, Italian debt concerns could also influence copper next year
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