SHANGHAI, Jan. 19 (SMM) – Price gains of base metals are expected to moderate in 2010, with mild increases in earlier year, and likely undergo significant corrections in 2H 2010, Barclays Capital said.
"Weak macro-economic outlook for the second half of 2010 will indicate that base metals prices will likely experience great corrections in the latter part of the year."
The recovery of metal demand in the US, EU, and Japan, and sustainable growth of demand in China will leave supply shortages of some metals during 1H 2010, reversing the current trend of inventories.
However, the growth of global base metal demand will slow, once the member countries of Organization for Economic Co-operation and Development stop rebuilding reserves, and the loose monetary policy in the countries around the world is tightened as expected.
(Edited by SMM)