- Copper has declined due to a strong dollar, increased production and a slowdown in China.
- In the long term a supply deficit is expected as mining grades are constantly getting lower and demand is steadily growing.
Commodities in general have been in a slump for the last 5 years; the Dow Jones Commodity Index peaked exactly 5 years ago on April 26 2011. High 2011 commodity prices induced new investments that—combined with low interest rates—made it easier to finance new projects, eventually increasing supply. With limited growth in demand the inevitable result was a contraction in prices. More →