Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  China May Only Pose a Near-Term Challenge for Price of Copper
Posted Under: Commodities
Supporting Image for Blog Post

 

View from the Observation Deck

  1. China is the largest buyer of copper in the world. It accounts for roughly 40% of annual consumption. The U.S. accounts for about 10%. (Copperinvestingnews.com)
  2. While the chart shows a period from Q1'06-Q1'12, the price of copper closed on 4/26/12 at $3.78 per pound. The average price for the 6-year span in the chart was $3.27 per pound.
  3. There has been some concern of late that China's goal of tempering economic growth could lesson demand for copper. China is now targeting a GDP growth rate of 7.5% (see chart for perspective).
  4. One of the reasons why the price of copper remains elevated is that China has reportedly been steadily increasing its imports in recent months to stock its inventories.
  5. Stockpiling copper may or may not lead to a pullback at some point, but Garrett Nelson, analyst at BB&T Capital Markets, believes the demand for copper is on pace for a low-to-mid single digit rise in 2012. Demand was up approximately 3.0% in 2011.
Posted on Thursday, April 26, 2012 @ 4:36 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
Agriculture Prices Take Breather Following Strong Decade
It’s Tough To Stay On Top!
Job Creation to Drive REIT Recovery from this Point Forward
The Question of Recession
Sell in May and Go Away! Think about it first.
Will the 2016 Summer Olympics Boost the Bovespa?
India's Stock Market Rebounding Despite Stubborn Inflation
Technology Stocks Have More to Give
A Preview of the 2nd Quarter
Managed Care Providers Back on Their Feet after "Obamacare" Knockdown
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.