Copper has nudged back up from a near five-month low, but many traders are wary of moving aggressively in light of political and economic instability in Greece. Still, for some, now may be a good time to shore up the red metal at a reasonable price.
M&A activity was strong during the first quarter of 2012 and may be set to increase further in the near future.
The Eurozone's outlook is weighing down on the global economy and copper demand for now, but signs of Japanese economic recovery and a pick up in US industrial output may give momentum to the red metal.
Despite global market concerns, this may be the best time to invest in mining companies that are eyeing longer-term gains and concentrating on addressing global demand in coming years.
Copper is holding steady following the European Financial Stability Facility's scheduled Greek bailout payment. Nonetheless, political as well as economic uncertainties are prevailing across Europe, and coupled with a decline in copper demand from China, are likely to keep copper from making any significant gains.
Thanks to its profitable mining giants, Australia has been able to thwart much of the pain that has plagued other governments worldwide. Looking ahead, though, mining groups are increasingly wary of investing too much too fast in mega-projects, and a slowdown in developing major copper mines may be on the horizon.
Copper is falling ahead of the release of April's US jobless data, with many analysts expecting weakness in the critical labor market. A new Indonesian mining tax, however, is expected to have limited impact on mining giants already operating in the country.
Chile is facing increasing difficulties in keeping up with ever-growing energy demand from major copper producers. Some mining groups may be pushed to secure their own energy needs as Chile remains one of the most lucrative site for copper producers.
The Federal Reserve's confirmation that it will keep rates low until later next year has buoyed demand for copper. Investors will be closely monitoring the balance of supply and demand in global markets as well as the financial situation in Europe and China in order to gauge the red metal's price moving forward.
The latest production results from the world’s top copper producers may have been far from stellar, but expectations of solid demand from China and a steady global economic recovery are pushing miners to continue investing in projects.
Get our independent commentary on copper trends and companies delivered to your inbox.
