NEW YORK ( TheStreet) -- Copper prices may have stalled, but a look at supply versus demand makes the industrial metal increasingly attractive.
Even though copper is down from its all-time high of $4.62 a pound, analyst reports continue to project that robust demand from China will help boost prices toward the end of 2011. On the supply side, analysts say that copper is in the midst of a worldwide production slump.
If you believe in construction and automobile growth in China and Japan, or even a housing rebound in the U.S., then you aren't far off from believing in the strength of the copper market. The base metal is used in wiring, roofing and industrial machinery, and often acts as a bellwether for economic health.
George Gero, a metals strategist at RBC Capital, says that on average, one automobile uses about 40 pounds of copper and one house averages about 400 pounds.
|One automobile uses about 40 pounds of copper and one house averages about 400 pounds.|
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