NEW YORK, Jun 03, 2010 (Dow Jones Commodities News via Comtex) -- The fundamentals of the copper market have been improving through 2010, but will weaken in the second half of the year leaving prices to average $6,000 a metric ton in the fourth quarter, the assistant vice president of commodities research at Barclays Capital said Thursday.
This is down from an average of $7,200/ton in the first half of the year, Nicholas Snowdon said told the Metal Bulletin copper conference in New York.
"Despite the recent decline in copper prices, the fundamentals are on a general strengthening trend," he said. "Demand growth has been at a double digit pace, while mine supply is underperforming. The global refined copper market was in an estimated 432,000-ton deficit in the first half of the year," he added.
But the demand-supply side fundamentals will soften in the second half, he told the conference.
"This softening will happen as OECD restocking of copper tapers off, and fiscal and monetary policy weighs on Chinese demand," he said. "However, 2011 and beyond will remain irrefutably bullish," Snowdon said.