CHART OF THE DAY: Here Are 4 Factors That Will Put The Squeeze On Dr. Copper

button more charts
button chart prev
button chart next

Copper is one of the most reliable indicators of global GDP.

And the demand for copper is expected to remain robust as the emerging markets continue to build out their infrastructures and the world becomes increasingly urbanized.

However, supply is a different story.

In a recent presentation, Vivek Tulpele, the Chief Economist at Rio Tinto offered this slide showing the four factors that could constrain supply.

As you can see, the grade of copper is declining, lead times are getting longer, disruption rates are getting higher, and the governments of suppliers are getting riskier.

chart of the day, state of copper, july 2012

Photo: Rio Tinto

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.