Economists say the world economy will do better this year. The copper market is saying that won’t be enough to eliminate a supply glut that’s lasted at least two years.
Prices of the metal traded near the lowest since October 2009 after falling 1.2 percent yesterday on concern that output is outpacing demand. China’s copper consumption will grow at the slowest pace since at least 2010, Deutsche Bank AG predicts. At the same time, global economic growth will be the best in four years, economist estimates compiled by Bloomberg show.
Copper’s plunge mirrors losses across commodities as a decade-long bull market led companies to boost production and the Federal Reserve debates when to raise interest rates. Investors last week doubled bets on more losses in copper, already the worst-performing industrial metal in the past year after plunging 18 percent.