Author: Paul Ploumis 19 Nov 2014 Last updated at 04:22:16 GMT
WASHINGTON (Scrap Monster): Max Layton, an analyst, in his report, affirmed that, the bank has declined its outlook for copper in the year 2015, from 6,400 dollars per metric tonne to 6,217 dollars per metric tonne. The report also asserted that the marginal production cost of the base metal, for the year 2015 will lie between, 5,600 dollars per tonne, and 6,300 dollars per tonne.
The report by the bank expressed that, the strength of the dollar, and decline in the price of the input, shows the lower cost of the metal and lower prices in the market for the metal. In case of the commodity markets, which are found to be in balance or in slight surplus, the price of the commodity, will always trade with or around the marginal operating cost.
In the London Metal Exchange, the value of copper stored for delivery in three month's, in the warehouse of the exchange declined 0.3 percent to 6,682 dollars per tonne. The price of the metal is down 9.2 percent and is preparing for the second annual decline.
If the State Reserve Bureau, the state stockpiling agency in China, stops buying copper, the price of the metal will fall below the average price 5,600 dollars per tonne. According to the report released by the bank, the agency will purchase an estimate of 500,00 tonnes of copper, this year, and 200,000 tonnes of copper the coming year, which will stabilize the price of the metal at 6,200 dollars per tonne, or in between 6,200 dollars and 6,3000 dollars per tonne.
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