LONDON (Commodity Online): Copper prices to average $9,250/ton in 2012, before prices stabilise just below $10,000/ton in 2013, said Natixis Commodity Markets Ltd. in a Q1 2012 Metals Review.
According to Natixis, after a period of significant destocking in 2011, Chinese apparent demand for copper is expected to increase more rapidly than the 6-7% increase in end-user demand.
This risks pushing the global copper market into a significant deficit in 2012, especially if, as Natixis suspects, the copper supply from the key South American producing countries remains constrained.
While a more rapid expansion in new mine supply is expected to commence in 2013, helping to bring the market back into balance as major new mines such as Oyu Tolgoi come on-stream, prices may push significantly higher in 2012 as global stockpiles drop sharply.
