What's Hot

By Tom Stundza, Executive Editor -- Purchasing, 4/5/2001

The U.S. market price for copper cathode has been slipping lately, but it's probably not a precursor to an imminent collapse. Rather, it's a reflection of marketplace uncertainties. "The market hates uncertainty," says Bette Raptopoulos, a veteran metals industry analyst who now is a principal at Metal Consulting Services in New York. The current economic slowdown is partly to blame for depressing short-term copper prices. But, prices often reflect speculative interest in copper as an investment as much as real supply and demand trends. And there are uncertainties linked to a new presidential administration, as well as the impact of Fed's interest rate cuts on the manufacturing economy. Another factor is that the market isn't sure whether demand will grow or not this year. If it doesn't, there may be a need for additional copper production cutbacks to keep the market balanced.