Recent Copper prices through the middle of July have seen a marked transition from a predominately a bearish market to a more optimistic bullish market. The global Construction Industry consumes approximately 30% of the world’s Copper supply, and a revival of the US Construction industry post-Global Financial Crisis has seen a recovering in the US Housing market with a 6.5% increase in existing home sales and a 23% increase in demand for newly built homes. This has resulted in rising demand for copper-based products, including electrical wiring and other construction necessities; hence the US housing market has been a major international driver of this Bullish market transition. Simultaneously, the Chinese Purchasing Managers’ Index indicated a rise in Chinese consumption rates to seven month high which has domestically spurred this Copper Market transition along.
Furthermore, the domestic Chinese Copper market has bounced back after a local scandal came to light in June involving a trade firm employing false statements and documentation to secure a loan that was considerably larger than the amount of Copper that was purchased. This scandal resulted in a marked decline in Copper prices, however once the dust settled after the scandal broke and the risk associated with it became known to the market, Copper prices stabilized. Signals of economic growth in China throughout July have further curbed the decline of Copper prices and continue to be a mitigating factor to any negative news around Copper.
Future Copper prospects in the medium to long-term are predicted to continue to grow and exhibit Bullish tendencies as the global economy continues to recover from the Global Financial Crisis. This is resultant from expanding consumer demand in key areas in the Copper industry including; the manufacturing of electronic goods, automobiles, and houses/buildings, which all require copper wiring and various Copper supplies to be built.
Shanghai Metal Corporation stocks a wide selection of Copper-related products and raw materials for all your construction or manufacturing needs. Please take the time to browse our online catalog at: http://www.shanghaimetal.com/Copper–tpl3.html.