A rosy outlook for copper prices

Copper has fallen dramatically out of favour since the start of 2015. Prices have dropped nearly 10% since the beginning of the year. Projections of strong growth in mine supply and concerns about demand, particularly from China, have led to investor selling. In this Metals & Mining Watch we argue that the concerns about demand are overdone and that forecasts for mine supply are overly optimistic. As the tightness in the market becomes more apparent, investor sentiment should improve, bolstering prices.