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Copper prices: analysts predict

18 March 2014
Copper prices: analysts predict

Analysts of the financial group «Citigroup» in their forecasts for 2014 have increased the average cost of one ton of copper, which will be 6975 USD, whereas the previous price was USD 6650 per tonne. Also increased the forecasted price of gold, up from USD 1255 per ounce to 1305 USD. While the projected price for iron ore fell from $ 120 per ton to 113 dollars.

The Japanese company «Mitsubishi Materials» also promises high copper prices — analysts predict the company the cost per ton on the London metal exchange in March this year will be from 7000 to 7300 USD. However, long-term forecasts, given the instability of the world economy, to give is quite difficult. However, the situation with the supply of the red metal is very tense, and LME stocks are gradually being reduced, creating the appearance of insufficient supply. In this situation it is not surprising that dropping to this spot prize again start to rise.

Despite the fact that the amount imported to China of copper in January this year set a record, a measure of purchasing power is reduced, and as a result, the demand will remain the same, created the same conditions are insufficient to ensure that prices for the red metal continued growth.

Meanwhile, the «Glencore Xstrata», mining company, last year increased the volume of produced metal by 26% in comparison with 2012, talking about the data she provided. In 2013, the smelting of copper was 1.5 million tons, but the volume of company-produced zinc decreased by 16%, which was 336,8 thousand tons, also decreased production of lead by 1% (to 81.1 thousand tons), and Nickel — for 18% (to 22.8 thousand tons). In the third quarter of last year, the company «Glencore Xstrata» by 34% increased the production of the red metal, which amounted 412,9 thousand tons.

And copper imports in Japan in January this year has increased three times in comparison with the same period last year and amounted to 5918 tonnes. This situation both because of the difficult situation with the offer of the red metal on the private market, and because of the insufficient quantity of stock, considering the fact that November 2013 had a large number of planned maintenance at plants. By 76% and increased supplies of scrap copper, making 9413 tonnes, also a 47% increase in the import of lead (3033 tons), 8% increased supply of Nickel (3671 tons) and 9% — supply of zinc (1419 tonnes).

17 March 2014
19 March 2014