I think the best way to answer this question would be to look at the balance sheets of a few large copper producers. If you did that, I would bet that you would find that the cost of mining and refining copper in dollar terms is rising quickly and mainly because of energy prices and partly from having to pay wages in ever stronger foreign currencies. Thus number 3 (falling dollar) is the biggest factor.
Mentioning price and USD in the same question is like asking which end of a seesaw drives it up or down. Likewise "demand" and "production". Demand is fairly clear: China is building, India is building, and USA is still using a lot. Production hinges on so many things that sorting them out becomes a matter of opinion.
So I guess I would have to say demand.
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If you had to pick one!
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Posted - 04/20/2008 : 22:44:41
