SMM9, March 21 / PRNewswire-Asianet /-- according to the latest market report from Fitch Solutions (Fitch Solutions), Fitch (Fitch Solutions) slightly raised its 2020 copper price forecast from $5900 / tonne to $6000 / tonne, as the company expects copper prices to roughly consolidate for the rest of the year.
Fitch said demand would continue to be supported by stimulus from the Chinese government and a recovery in global economic activity.
In March, the agency forecast a bull market of $5900 / t in anticipation of a strong rebound in Chinese demand. This view has been well supported in the past six months, as China's copper consumption increased by 24.1% from January to July, and copper prices soared to near pre-epidemic levels.
Fitch also raised its average copper price forecast for 2021 to $6300 a tonne from $6100. Some analysts say prices are expected to fall slightly from current levels as mining production increases and refining production increases next year.
In addition, with the release of new economic data, updates on the progress of the epidemic and the approach of the November US election, market sentiment will continue to fluctuate.
In the long run, Fitch expects prices to continue to rise as the copper market continues to outstrip demand due to increased demand for copper in the power, construction and automotive industries.
The increase in upstream copper concentrate production will help to increase refining production, thus reducing the room for price increases.
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