I've been hearing for a while that copper had to go below $2, and some were estimating even down to $1.50. I think that was more hope than expectation though. The thinking is that if copper went quite low for months up to a year then there finally would be capitulation on the mines that are operating at a loss. Once those were taken off the top then supply would be in constraint again and the price would bounce back. The winners, those that remain, would do well.

Going from memory there was something like 33% of the mines would be out of the money if copper dipped below $2. Maybe that would be 33% would remain—no matter, a significant number of mines would not be producing.

It does make me wonder if there is an attempt to force copper down in order to clean up the unprofitable end of the curve. Even at $1.02 we're at the bottom end of the curve with SC. We just have to last long enough to catch the turn.

I don't understand the fuss with China. If everyone is disappointed at their projected growth of 6.5%, imagine how they would feel if they knew the truth? It's still growing though and that makes it better than every other year prior to this one.

As I keep saying, all we need is one good environmental catastrophe, or a bunch of mine closures and we'll be on the way up again.