Published: Wednesday, 05 January 2011 17:25
Written by E&MJ News
The spot LME copper price is quickly approaching $4/lb. During the last year copper prices are up about 34% and a little less than a third of the gain (10%) occurred during the past month. Copper prices reached these levels during June 2008 before giving way to the global economic crisis. Today, however, the gains look sustainable for the near term.
The International Copper Study Group (ICSG) believes the copper market could move from a small surplus in 2010 to a deficit situation of -435 kt in 2011. The forecast is based on surging Chinese demand and tight supplies. Copper prices are expected to remain strong, at current levels or better, for the next several years.
The ICSG’s Statistical Committee met during September in Antofagasta, Chile. Government delegates and industry advisers from most of the world’s leading copper producing and consuming countries discussed key issues affecting the global copper market.
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