A new report by Goldman Sachs analyst Max Layton is full of bad news for copper investors. Despite a steep collapse in copper prices, Layton believes that copper investors will be waiting for years for copper prices to recover.

The 3 Ds

Layton believes that the “three Ds” weighing on copper prices throughout 2015 will continue to do so in the foreseeable future: Divergence between U.S. and non-U.S. growth, Deflation of energy costs and Deleveraging in emerging markets.

China is a particular problem for copper, as Goldman’s China Metals Consumption Index continues to indicate a hard landing for commodity prices due to weakness in Chinese construction numbers. “We do not see these bearish drivers changing for some time, and as such producers are set to remain under pressure and likely rationalize global production,” Layton explained.

Forecast

The latest global demand trends indicate…

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