Dr. Copper Has Bad News for Mining Stocks - 1 views
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Colin Bennett on 29 Sep 15"Besides an imbalanced market, renewed U.S. dollar strength could also weigh on copper prices. Additionally, there is also the rising threat of substitution over the long term. Nomura's Jones estimates around 75% of demand could be at "medium or high risk" of substitution." In many instances, copper could be replaced by aluminum, which is markedly cheaper than copper even after adjusting for differences in conductivity. Jones sees air conditioning and auto manufacturing as key areas where the compelling economics of aluminum pose a major threat to copper demand."