Last Updated : 05 December 2012 at 13:40 IST
Copper: Weak demand and low expectations in store, says CESCO meet
Source :Commodity Online/Barclays Capital
The market participants also expected treatment and refining charges to rise, reflecting increased mine supply. The higher mine supply means “considerable downside risk” to its first-half copper price forecast of $8,850 a metric ton.
India's gold and silver imports declined by 80.55% to $1.05 billion in November compared to $5.4 ..
By Col. Ajay
As per financial astrology, transit OD Sun in Saturn house is ..
LONDON (Commodity Online): Analysts with Barclays Capital said that many views expressed during last week’s CESCO Asia Copper Week were for weak demand and low expectations. During the week, Codelco offered to cut 2013 premiums for China.
“Many traders had hoped for a bigger cut, but most participants we talked to expect contracted tonnages to fall only by around 10%, given the need to maintain a steady supply amid uncertainties,” said Barclays.
According to the British bank, market participants also expected treatment and refining charges to rise, reflecting increased mine supply. The higher mine supply means “considerable downside risk” to its first-half copper price forecast of $8,850 a metric ton.
“A sustained improvement in prices looks unlikely until there is evidence of draws in Chinese inventories. Feedback on physical demand was mixed but expectations were mostly for soft demand overall, with some semi producers reporting an increase in orders. But many others painted a deteriorating picture. Lackluster demand may have been exacerbated by overcapacity,” Barclays added.
“The high levels of bonded warehouse stocks have weighed on premiums and Shanghai prices, creating a self-reinforcing cycle that kept stocks at elevated levels. It would likely take an external shock to reduce these levels,” Barclays concluded.
- Indian Railways carry 677.56 mn tons of freight during April-Nov 13
- Shale Gas boom or bumper crop: What will drive the Guar complex?
- Indian Sugar industry should maintain market equilibrium, diversify products: Minister
- India Diesel prices may not be hiked, OMC's not to be impacted: Ind-Ra
- India merchandise trade deficit narrows despite slowdown in export growth
- Gold slides back after gains on short covering, fresh buying