A big rise in world copper prices is coming to an end as more metal reaches the market and China reduces imports, Australia & New Zealand Bank forecast on Friday. Demand in China for copper has largely underpinned a surge in global copper markets this year amid fear producers will fall short of meeting consumers needs.
"Copper prices will ease from near record high levels in the next 12 months, but remain over $3.00/lb as supply conditions remain tight," the bank's senior commodities analyst, Mark Pervan, said in a report.
On Monday, the Comex July copper contract surged as much as 44.00 cents, or 11.5 percent, to a record high of $4.2605/lb, but in the last session was plumbing a one-week low.
The London Metal Exchange three-month contract is up about 20 percent this year but also in decline this week. Shanghai copper prices fell 1.2 percent to a three-week low on Friday as expectations mounted that soft Chinese demand would see further increases in Shanghai and London exchange stockpiles.
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