Soaring demand for copper will help drive mergers, BHP CEO says
Demand for copper, a key element in the energy transition, is set to rise by 70% to 100% by 2050, Mike Henry said
Prices for copper and other base metals fell on Tuesday as investors continued to assess the impact of slow economic growth in China.
Copper for delivery in September was down 0.38% on the Comex market in New York, touching $3.82 per pound ($8,404 per tonne).
Click here for an interactive chart of copper prices.
“Base metals have come under pressure at the start of the week following China’s second-quarter gross domestic product data, which came in below expectations, adding to concerns over the health of the Chinese economy,” said ING analyst Ewa Manthey.
China’s gross domestic product grew 0.8% during April-June from the previous quarter compared with a 2.2% expansion in the first quarter as demand weakened at home and abroad, data showed on Monday.
Beijing said it would roll out policies on consumption recovery and expansion, boost automobile and electronics demand and increase household income, but that has so far failed to improve investors’ confidence in demand for metals from the world’s second largest economy.
“There are no signs so far that the government will offer stimulus measures like infrastructure and housing support, that would lift flagging metals demand,” Manthey added.
On the technical front, copper is squeezed between the 200-day and 21-day moving averages at $8,475 and $8,421, respectively.
(With files from Reuters)
