Capital Market Highlights: Copper

After ending 2015 down by 25%, copper has rebounded by the end of 2016 gaining 17.0% to $2.49 per pound. Previously, copper has been struggling to maintain the four year price support level at $3 per pound which was broken through in the second half of 2015. The metal surged over $2.50 in November on news of Trump’s election victory supported by his aggressive infrastructure spending policy proposal. That said, copper is showing signs for improvement in the medium term as strong industrial demand is forecasted from North America and China. China is the world’s largest copper consumer accounting for more than 40% of global consumption and is a major driver in the copper market. Copper is widely used in construction and manufacturing, therefore it’s pricing is very sensitive to economic conditions, especially in the case of China where it has experienced an economic slowdown.