Copper demand is considered a useful bellwether of economic activity because it goes into a broad array of goods.
Recently, people have attributed price fluctuations to uncertainty in China.
But China isn’t the only consumer of copper.
Morgan Stanley’s Adam Longson offers this chart breaking down global demand by region. (Note: ROW stands for rest of the world.)
Here’s some comments about demand from Morgan Stanley:
We think underlying copper demand trends remain encouraging. In the US, the European copper smelter and refiner Aurubis said at the beginning of 2Q that its order flow was the best in 18 months. In China, tube and wire demand have been robust, particularly on improving demand for white goods and home appliances as well as from the auto sector. Easing credit conditions and targeted investment decisions have boosted investments in conventional thermal power grids and copper intensive smart grid technology in China as well.
Outside of China, and the US construction and auto manufacturing are also supportive of stronger off-take, and even in Europe. Our revised economic forecasts suggest a moderate rebound in 2H13 is possible.
And here’s a quick look at prices:
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