BROAD TRENDS SUPPORT HIGHER PRICES

BASE METALS

Electrifying future for copper in long run

Global copper prices should rise again on the back of the electric energy sector growth in the developing world.

Author: Terry Wade

Posted: Friday , 03 Apr 2009

SANTIAGO (Reuters) -

The worst of death-defying drops that global copper prices took in the past year appear to be over and, in the long run, prices should rise again on the back of electric energy sector growth in the developing world.

But the outlook for the short and medium terms is more opaque as global leaders try to revive national economies with massive stimulus packages. And the scrap market may hold a wild card as all this plays out.

After tumbling from highs of over $4 per pound last July to a low of $1.25 in December, prices recovered steadily in recent months and surged this week to $1.90 a lb on short-covering by traders and purchases by China.

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http://www.topstocks.com.au/stock_discussion_forum.php?action=compose&;fid=2816&x=33&y=18

Copper nudging 2.00 US/lb again, this would be the 3rd re-test. I expect it to break through 2.00 and trade up to 2.10 before consolidating again.

here we go, my comments above playing out, copper up 4% to 2.0567 $USD/lb, im confident it will hit 2.10 before a breather and sideways consolidation for a few weeks.

This is the contrarian play, everyone thinks the fundamentals for copper is terrible except for Mr Market.