Mar.25 (Bloomberg) --Copper price risk is moving to the "downside” on turbulence in the Middle East and North Africa and this month’s earthquake in Japan, Goldman Sachs Group Inc. said.
"The anticipatory pricing that pushed copper prices beyond $10,000 a metric ton earlier in the quarter is now encountering new headwinds,” analysts including Joshua Crumb in London said in a report dated today.
Still, the metal is likely to remain above $9,000 a ton for now, the bank said, citing a probable return of Chinese buying and a "tightening impact” from Japan. That will create "demand-pull” support for copper prices, it said.
Copper for three-month delivery traded at $9,743 a ton at 4:06 p.m. on the London Metal Exchange. Prices reached $10,190 on Feb. 15. Imports of refined copper into China, the world’s biggest consumer, dropped to a two-year low in February, customs figures showed on March 21.
Goldman Sachs said it still expects supply shortfalls in the "medium term” that will push inventories toward "critically low” levels.