Copper is the prime industrial metal and is utilised in the construction of infrastructure and civil works. It is widely used in the generation and distribution of electricity, plumbing and various piping together with commercial building construction. BRIC countries where mass migration is taking place, for instance, in China, the need for large amounts of copper to support the growth of cities helps to provide dwelling and energy facilities for masses of people moving from the countryside. This demand from developing economies is putting a great strain on global copper supplies.
Like most of the world's precious resources, copper also tends to come from nations with poor political conditions. Such countries as China, Chile and Peru are others that possess the biggest resources of copper have been beset by a preponderance of problems. Aside from the political woes, these nations also undergo geographical challenges such as natural calamities brought about by earthquakes and typhoons which all contribute to problems with satisfying current copper demands. These disasters, however, are commonplace within these nations but invariably cause drastic shifts in copper prices when they occur.
Copper is seen by many as an indicator for global economic growth, and we usually see the movement of copper going in the same direction as equity markets and other industrial metals.