Wednesday, March 18, 2015
Copper price ex-US
IKN's posted another copper price chart today, so I thought I'd add this in as food for thought:
The copper price indeed puked recently, but:
Only in US dollars. And I guess renminbi too, since that's pegged to US dollars.
Which means copper is cheaper for the US and China, so since they're now getting a deal you'd think they'd consume more. But it's still the same price it's been for the past 2 years in all other world currencies, so that means other countries are not benefiting from a "lower" price of copper.
Which I guess would be yet another way in which the US benefits from a strong dollar. And China too, if they decide to remain pegged and still want to gobble up loads of it as they modernize.