GREY:MWSWF - Post by User
Post by
KaeKam44on Jan 18, 2015 1:00pm
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Post# 23332859
Low Supply Increases Demand and Strengthens Prices. All Good
Low Supply Increases Demand and Strengthens Prices. All Good
What that means is that even if the Chinese economy slows to only 7% growth this year (the lowest since 1990), the rise in annual copper demand from China will still be higher than it was a few short years ago. With clearly constrained supplies in the near future, the market will get tight and support higher prices. All of the large copper mining companies will obviously benefit from this. And if a “white swan” appears for the copper market in the form of the China State Grid, look out for copper to become red hot. That entity has about $71 billion to spend on upgrading the nation’s grid – a copper-intensive undertaking.