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Copper demand has really nothing to do with USA economy because if it did, then copper would have fallen off a cliff when the US Housing turned down.

 Instead copper has risen much higher since the US Housing downfall because of emerging markets electricity grid demands in combination with the falling US Dollar, copper is priced in US Dollar.

 From Seeking Alpha article:

There is perhaps no greater trend emerging than the growth of electricity consumption and power generation. China this year will add 80GW of generation after adding 95GW in 2007. India's entire electric capacity is a mere 135GW, leaving the country roughly 17% deficient during peak hours. India will need to build out 80GW of generation by 2012 just to break even. News emerged this month that South Africa is experiencing severe power shortages and Vietnam is struggling with brown outs.

Outside of emerging markets, developed countries, too, are building out new power generation in the form of wind, solar, and fuel cell technologies. Korea Electric Power, which imported 17% of its coal from China last year, is scrambling for alternative sources after China announced an end to coal exports last month (Suntech Power just opened its first office in Korea this month and a KEPCO subsidiary has been buying fuel cells from Fuel Cell Technology for the last 6 months). Leave Asia, take a drive through Scandinavia, and you'll see the consistent build out of new wind farms, both on land and off-shore.

The bottom line is this: Emerging markets are building out electricity grids on a scale never before witnessed and developing markets are making the shift to alternative forms of energy. The facilitator of this mega-trend is: Copper. In regards to wind and solar energy, each requires 5-10 times the amount of copper as a traditional coal-fired plant. The data is not concise, but annual copper consumption ranges somewhere between 26 billion lbs. to 35 billion lbs. If we take the low end of 26 billion lbs. and factor 3% growth, copper miners need to increase production 780 million lbs a year to keep pace with global GDP. If you speak to leaders within the industry, they'll tell you there are no mines coming online now or in the future that can meet this demand.


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