15 days ago • Posted by William Ramstein
Copper shortages: supplies of copper have veered into deeper deficits
Copper is widely recognized as a proxy for macroeconomic health. Exorbitant commodity prices led producers to cut capital spending on major resources by nearly half over the last decade, shrinking stocks of industrial metals to 20 year lows and reducing the supplies across commodities. The crunch is now converging into a buying spree in key markets which is supercharging prices. The materials stretch could convert into higher prices for consumers or more broadly, force firms to shut down production as a raw-material shortages morphs into a market dysfunction.