Freeport-McMoran Copper & Gold (NYSE:FCX) CEO Richard Adkerson sees Copper prices higher longer term.
Mr. Ackerson said China's slowing has not as big an impact on copper demand as it has had on other commodities.
"There's continued spending on infrastructure," he said, adding the markets are reacting to signs that the Chinese government will take actions to support growth.
With inflation under control, Mr. Adkerson is "optimistic on China."
Copper demand in the US is also running stronger than the overall economy because of a pick up in the automotive sector and the beginnings of a rebound in housing, Mr. Adkerson said.
Although Freeport-McMoran does not make predictions about Copper prices, Mr. Adkerson said that he is very optimistic about the price of the Red metal longer term.
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Mr. Adkerson is not alone in expecting higher Copper prices. The Head of Metals & Mining Sector at Barclays, saidTuesday that Copper is the commodity that both he and markets are most Bullish on.
A Key reason for Copper's strength is structural; Copper as a commodity is supported by limited supplies.
Freeport-McMoran is in a position to take advantage of the limited supplies because it has very large reserves at its existing mines, Mr. Adkerson said. "So by investing in Brownfield Projects we can step up and provide supplies when the industry as a whole is challenged."
"We can provide volumes and make a lot of money if prices go higher which I anticipate they will," he said.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.