Industrial Insight

Copper signals strong steel casting demand… | October 8, 2010

http://www.marketwatch.com/story/dr-copper-speaks-volumes-about-emerging-markets-2010-10-08

Copper rallies on strong emerging-market demand

Commentary: Copper prices as a gauge of economic trends

Copper’s /quotes/comstock/21e!f:hg\z10 (HGZ10 *378.50*, +10.55, +2.87%) economic sensitivity is so great, in fact, that traders often refer to it as “Dr. Copper,” suggesting that it holds a Ph.D. in economics because of its ability to help predict economic trends.

“Copper is not easily replaceable so often end users cannot substitute” for it as they can for other base metals, said Kevin Kerr, editor of Kerr Commodities Watch. “That is one of the elements that makes copper such a good gauge of real value in the industrial metals.”

The market for gold may show signs of a bubble, but it’s one that hasn’t burst yet, columnist Brett Arends says.

And right now, Dr. Copper’s value gauge is rising off the charts.

Futures prices for the metal climbed to a 26-month high in New York this week, with many investors convinced that demand for the industrial metal will continue to climb from countries such as China and India.


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I'm the executive vice president for a steel casting trade association, the Steel Founders' Society of America. I've got a crazy wife, five crazy children, three crazy people that married into the family, and two crazy fun little grandsons.

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