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Copper Miners Outlook: It's Worse Than You Think

The battered stocks may screen cheap, but we see further downside as Chinese demand from real estate and power activity ebb.

Copper Miners Outlook: It's Worse Than You Think
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Jeff Stafford: The outlook for copper is worse than most think. Battered copper-mining stocks may screen cheap, but we see further downside.

Despite many analysts dialing back their near-term copper-price forecasts, they remain bullish on the long term. We disagree and forecast a long-term price of only $2 per pound, mainly because we see mounting evidence that Chinese copper demand reached a cyclical peak in 2015. Ebbing Chinese demand from real estate and power activity are the main culprits.

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Jeffrey Stafford does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.