According to the bank, data from the World Bureau of Metal Statistics showing the global copper market experienced a supply deficit in excess of 100,000 tons in November. Demand rose 4.2% month on month. China above all had taken advantage of the low prices to buy significantly more copper.
The bank anticipates further copper gains in the medium to long term, but cautions about potential for profit-taking in the short term. Meanwhile, Tin has topped $22,000 for the first time in more than two months.
“Although Indonesia has again been exporting high volumes of tin following the failure of the export ban in December, bad weather may again hamper production and transport,” Commerzbank added.
Further, Chinese output in December was 38% less than the previous year, likely offset by higher imports. Still, Commerzbank offers caution: “the price of tin has risen too sharply recently, so we see correction potential.”
