This paper is an analysis of the global copper industry. It indicates that it is more than likely that prices will increase over the next decade; this is easily seen because certain factors that were apparent in recent years cannot be repeated. Weakening demand in major markets has been the primary reason production cuts have been implemented; copper prices are down globally. In early June of this year, copper prices dropped below $1,600 a ton (72.6 cents per pound) for the first time since July 1999. Average copper prices fell 2.7% and 27.2% from a year ago to US 64.8¡é/lb. in September. The decline reflected continued demand weakness and comparatively fast production growth. At the end of the third quarter, global copper consumption declined 3.3% while refined copper production rose 4.6%. Low inventory levels, combined with the possibility of mine closures due to high-energy costs, suggest the copper price should increase. (International Copper Information Bulletin) U.S. copper mine production dropped to 3,247 million pounds from last year's all-time high of 4,220 million pounds.
