NEW YORK The cash price
for copper looks poised to reach an average of $3.42 per pound
over the next 10 years, according to a senior mining analyst
for independent market researcher Salman Peters Inc.
The metals average cash
price is expected to grow during the next decade to $3.49 per
pound in 2023 from its current low point of about $3.29,
analyst Raymond Goldie told AMM.
Copper "is the only commodity to
diagnose long-term trends," he said at the New York Society of
Security Analysts 14th annual Metals and Mining Industry
Conference in New York. Three months ago, Goldie predicted
prices would be around $3.70 per pound, but he said he had
changed that forecast to reflect seasonal changes.
"Copper is sufficiently liquid,"
he said. "Theres a growing shortage of copper that helps
to support flat prices."
Every year, the amount of copper
available from mines decreases, Goldie said.
"Right now is the best time of
year to buy copper," he said. "Commodity prices are going
sideways. Its part of a seasonal trend, a downward
Copper is the most reliable
metal for long-term forecasting because the metal is needed for
so many industries, he said. Other metals, such as aluminum,
are used in only a few industries, while copper is used in
communications, electronics, auto manufacturing, construction
At some point, copper could be
affected by a stall in Chinese imports because of the
demographics, Goldie said. A large part of the Chinese
population is aging, while countries such as India have a
primarily young population that can fuel the next economic
The July Comex contract, the
most actively traded, settled at $3.2685 per pound June 7, down
0.7 percent from $3.2925 a week earlier.