Betting against copper dangerous

New York
Many mining companies thought copper was the commodity of the future. Now it is exposing their attachment to the past. The red metal appears destined to sink further unless miners make deeper cuts to production.
Real and perceived concern over demand from China is the key reason behind copper’s recent declines. The red metal is widely used in electrical wiring and power units in domestic, commercial and industrial sectors. Where China’s construction sector goes, copper prices seem destined to follow.
China is not the whole story: some miners had thought copper would outperform any downturn in commodities due to its expected growing demand in industries such as renewable energies and wind turbines. That thesis is looking less robust as well.
Copper has already fallen by around 32 percent since last November. It touched a new six-year low below $4,500 a tonne on Nov. 23. But while the price is linked to demand, it also depends on production volumes.