News Analysis
Copper’s remarkable second-quarter price decline showed how the prospects of a global recession can overwhelm favourable supply-demand dynamics. The multi-purpose base metal is a priority for Canada although some say depressed prices may slow production.
Canadian mining veteran Donald Bubar, president and CEO of Avalon Advanced Materials Inc. and board member of junior exploration company Copper Lake Resources Ltd., points to the inconsistent view of financial markets on copper compared to its promising economic fundamentals.
“The copper price has pulled back after that big run-up to well over US$4.00 [per pound], which I think was driven largely by speculation on increased demand rather than pure supply-demand fundamentals,” Bubar told The Epoch Times. …