That seems to be the battle cry of copper these days, as the monthly average price came in at a three-year high of $3.0956 during October, up 11¢ from $2.9841 during September, and +95¢ from last October. The year to date average now stands at $2.75, up 61¢, or 29% from $2.13 during the first ten months of 2016.
What’s driving the market higher? Check out the numbers below are the numbers from our friends at The International Copper Study Group:
The key word here is “deficit” in the global market balance over the past three years, and based on expectations for this year and next. Adding a bit more weight to the positive outlook, Reuters quoted Aurora Williams, Chile’s minister of mining, as saying she sees copper averaging $2.95 next year, citing a persistent market deficit. Ms. Williams went on to say, “It’s more important, rather than looking at outright prices, to look at the trend.”
Indeed, we could not have said it any better.