Goldman Sachs Lowers 2010 Copper, Zinc Estimates, Raises Gold

SHANGHAI, Apr 7 (SMM) - Goldman Sachs predicts that copper is unwittingly heading for inventory depletion, and while price action remains modest, fundamentals are tightening.

Market focus this week include: the annualised reading of new housing starts in the United States in August, the initial value of the manufacturing PMI in the Eurozone in September, and the initial value of the Markit manufacturing PMI in the United States in September; China's one-year loan market quotation interest rate as of September 22. In terms of events, FOMC will announced the interest rate resolutions this Thursday; the Fed Chairman Powell will hold a press conference; and the European Central Bank will announces an economic bulletin.

Goldman Sachs raised the likelihood of additional interest rate hike by the Fed this year from 55% to 60%.

Goldman Sachs leaves its forecast for gold price by the end of the year unchanged at $1,250 per ounce unless tensions in North Korea intensify, it said in a report.

Many zinc traders contributed the surge in zinc market mainly to two factors, 21st Century Business Herald reported. 

Goldman Sachs hiked its forecast for iron ore prices from $67 to $71 per tonne for 2017.

The price spread between domestic and imported zinc has narrowed recently, SMM noted.

What's the impact on copper supply from the strike?

China Daye Non-Ferrous Metals Mining announced in a statement that a breach occurred at northwestern corner of tailings pond at Tonglvshan mine of the company on March 12.

China Minmetals Corporation will expand production capacity of base metals, with copper and zinc as priority choice, said He Wenbo, Chairman of the company at the NPC&CPPCC sessions.