The copper industry 1945–1975

During the 1945–1975 period copper differed from other major non-ferrous metals and mineral products in experiencing rising real prices, on a trend basis. This paper examines the major features of supply and demand over the period, including the impact of economic activity, changing locations of consumption and trends in costs. Government controls affecting both supply and demand and US government stockpiling policies were all pervasive especially in the 1950s. Supply was throughout periodically interrupted by lengthy and widespread strikes and was also subject to frequent and wide-ranging political disturbances during the 1960s. From the early 1960s onwards a substantial share of world production became state controlled, profoundly altering the objectives and commercial policies of suppliers. Tightening anti-trust legislation and the changing location of consumption combined with changes in ownership to weaken the willingness and ability of suppliers to influence prices. The paper concludes that the behaviour of copper prices during the 1945–1975 period arose from the particular circumstances of the time and offers very little guidance, if any, to likely future trends.