2015 Outlook the $ 60 per ton range in the third quarter of 2015 . Goldman Sachs is a little more positive as the company believes the precious metal will hover around the $ 80 per ton mark .
The Future of Copper Although demand for copper is steadily increasing , the overall outlook for the metal is bleak . The metal , which is expected moderate growth in the next five years , is past the point of maturity and is now in decline .
“ Due to these declining grades the average run of mine ( ROM ) grades for copper have actually fallen by three quarters to less than one per cent , yet at the same time annual supply increased from under one million tons to more than 16 million tons ,” BHP CEO Andrew Mackenzie said .
According to IBISWorld research , the Industry revenue for copper is forecast to grow at an annualized rate of 1.5 percent over the next five years to US $ 7.1 billion in 2019 / 20 ”.
ANZ head of economics corporate and commercial , Justin Fabo , added that “ copper looks vulnerable enough to slip back through the $ 7000 per ton mark as we approach the normally quiet northern hemisphere summer ”.
“ Operating rates at copper tube and pipe fabricators fell below 80 percent mid-year , an indication that end-user demand is weak ; we would be positioned for some further downside in the short-term .”
While the slow increase in copper prices may seem like a positive turnaround , in the long-term the metal has no real future . Copper prices are expected to increase moderately before drastically declining in 2017 / 18 . If the industry is lucky , the metal will return to minimal growth in the next period .
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