Copper prices likely to fall
Monday, 1 November 2010
WASHINGTON, Oct 31 (Commodity Online): After scaling new heights, copper prices are set to fall as global economic weakness and slower growth in China sap demand, two Deutsche Bank analysts said.
Copper prices are unsustainably high because of the weaker US dollar and loose monetary policies around the globe, analysts Daniel Brebner and Xiao Fu wrote in a research note. When demand levels, prices could tumble, crimping earnings for major copper companies.
Companies that depend heavily on the price of commodity copper include Newmont Mining Corp, based in Greenwood Village, Colo, Freeport-McMoRan Copper and Gold Inc and Souther Copper Corp, both based in Phoenix; London-based Rio Tinto Plc; Brazil's Companhia Vale do Rio Doce.
Copper prices are unsustainably high because of the weaker US dollar and loose monetary policies around the globe, analysts Daniel Brebner and Xiao Fu wrote in a research note. When demand levels, prices could tumble, crimping earnings for major copper companies.
Companies that depend heavily on the price of commodity copper include Newmont Mining Corp, based in Greenwood Village, Colo, Freeport-McMoRan Copper and Gold Inc and Souther Copper Corp, both based in Phoenix; London-based Rio Tinto Plc; Brazil's Companhia Vale do Rio Doce.