Mumbai, 01 Jul (Commoditiescontrol): According to industry participants and analysts, copper is anticipated to be the most bullish base metal in the second half of the year, driven by ongoing tight raw material supply, increasing Chinese demand, and heightened investor interest.
Benchmark three-month copper on the London Metal Exchange recently hit a record high of over $11,100 per metric ton, a 25% surge in just seven weeks. This impressive rise is attributed to fund inflows betting on copper's crucial role in the green energy transition and a short squeeze on the CME in the U.S.
An industry leader noted a surge in investor inquiries about copper's potential and the best equities to invest in. While the initial excitement has moderated, interest remains robust. Forecasts suggest copper prices may stabilize around $9,500 through the third quarter, potentially reaching $12,000 by the year's end or early next year. This optimism was echoed at a recent LME seminar, where over half the attendees identified copper as the metal with the most upside potential, outpacing aluminum and nickel.
Supporting this bullish outlook is the persistent tightness in raw materials and expectations of reduced output from copper smelters. Analysts predict a widening deficit in the copper concentrate and ore market by 2025. Recent agreements on treatment charges between a Chilean miner and Chinese smelters, reflecting a sharp reduction from previous benchmarks, underscore the scarcity of copper concentrate.
Despite lower treatment charges, Chinese smelters have maintained their output, aided by an increased supply of copper scrap. However, scrap supply is tightening, and with anticipated destocking of refined copper in July, Chinese demand is set to rise, potentially driving prices even higher. This intricate balance of supply and demand underscores copper's pivotal role in the evolving global market.
(By Commoditiescontrol Bureau; +91-9820130172)
0 Comments 
Post Comment 
