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Meanwhile, in the first five months of 2013, world copper usage is estimated to have declined by around 2% compared with that in the same period of 2012, said International Copper Study Group (ICSG) in a release last ..

21 Sep 2013

LONDON (Commodity Online): After a statement from US Federal Reserve on its monetary stimulus, now copper investors are eyeing on copper fundamentals which are look weak and are likely to pressurise the base metal prices later this year.

Copper prices recorded a jump than any other base metal last week after a statement from the US Federal Reserve said that it will continue with its existing monetary stimulus till the economy backs to its solid growth path. The statement fuelled short covering in the base metal and caused a significant up-tick.

The benchmark copper on London Metal Exchange (LME) touched a high of $7,368 per ton, the highest since August 27 last week.

LME bench mark copper contract closed at $7,295 per ton on Friday while copper for December delivery on Globex platform of Comex closed slightly down at $ 3.3205 per pound on Friday.

“Indeed, we believe copper fundamentals are set to weaken as the year progresses with the market moving into surplus in Q4 at the same time as the momentum of Chinese demand growth is likely to soften. We therefore favour selling into this price strength,” said London based Barclays in an emailed report.

Economists at Barclays have revised down their 2014 China GDP forecast to 7.1% from 7.4%. The projections are expected to pressurise the base metal complex, especially copper. Chinese copper demand from power sector is likely ease on a weak note later this year as per Barclays estimates.

Meanwhile, in the first five months of 2013, world copper usage is estimated to have declined by around 2% compared with that in the same period of 2012, said International Copper Study Group (ICSG) in a release last month.

World refined copper production is estimated to have increased by around 6.5% in the first five months of 2013 compared with refined production in the same period of 2012: primary production was up by around 5%, and secondary production (from scrap) increased by 12%. The main contributors to growth were China (15.5%), Democratic Republic of Congo (DRC) (43%) and Zambia (18%), with refined production declining by 5.5% in Chile, the world’s second largest refined copper producer, as per ICSG release.


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