Increase in copper price is unlikely, says analysts

Author: Paul Ploumis
21 Oct 2014 Last updated at 05:49:56 GMT
LONDON (Scrap Monster): In the Metal Seminar conducted at the LME, Edward Meir, an analyst at INTL FC Stone, stated that, breaking out the earlier predicted supply glut, the demand for copper in the global market, will only rise to 150,000 tonnes, in the year of 2014.

A recheck on the outlook of global copper demand, by the International Copper Study Group, showed a lag of 270,000 over supply and demand, the same group, had earlier this year, forecasted a demand of 40,000 tonnes of copper in the global market.

When it comes to theory, a lag in supply would eventually lead to the increase in the price of the metal, but according to the analysts, the biggest consumer of the metal China, is currently under economic pressure, which is likely to affect on the demand of the metal, along with that the demand growth in both Europe as well as Japan still continues to be uncertain, which will only increase the pressure on the metal’s price as well as demand.

Meir added inn the se3minar, that it was the first time since the world financial crisis, that, all the major economies in the world, outside the United States are going through such an uncertain phase.

As the main use of copper is in the manufacturing sector, the economy of the countries affects the metal. He further stated that, the price of copper on the LME, would stay around about, 6,700 dollars per tonne, until the year 2015.