Industrial Metals to Advance Next Year on Demand, Natixis Says

LONDON, Aug. 2 -- Copper and other industrial metals prices will rise next year as demand increases on global economic growth, according to Natixis Commodity Markets Ltd.

Growth in emerging markets, fiscal and monetary stimulus in developed countries and increased capital spending by corporations will boost demand for base metals and the platinum group metals, Natixis said in a report today.

Demand from the global automotive industry, mainly driven by consumers in developing countries, may support metals usage,. the report said. Global car production rose to a monthly record in March, Natixis analyst Nic Brown said.

"The auto sector, particularly in the developing economies, should support some modest gains" in platinum and palladium, which are used in pollution-control equipment for vehicles, Natixis said in the report.

Platinum will average $1,600 an ounce this year, up 0.8 percent from the current average, and will average $1,700 next year, Natixis said. Palladium will average $465 an ounce this year and $510 next year. Aluminum for immediate delivery will average $2,148 a metric ton this year and $2,400 a ton next year, Natixis said. A car in Europe contains an average 157 kilograms (346 pounds) of the lightweight metal, Brown said.

The aluminum market will be balanced next year after a surplus this year, according to the report.

Copper supply will outpace demand by 150,000 tons this year and revert to a shortage of 65,000 tons next year, the first deficit since 2007, Natixis said. Copper for immediate delivery will average $7,230 a ton this year and $8,300 a ton next year, according to the report. Tin will have a shortage of 4,000 tons this year, it said.