Copper supply cuts won't lift prices, analysts say

Copper mine disruptions have brought supply-demand fundamentals closer to balance this year, but weak demand will continue to stifle prices in the near term, with consumers advised to buy now, according to industry analysts.

The September-delivery Comex copper contract settled at $2.362 per lb ($5208 per tonne) on August 4. That's up 0.7 percent from the previous day’s close at $2.346 per lb, the lowest level since the most actively traded contract closed at $2.2945 per lb July 14, 2009. “The situation with copper is interesting as opposed to other metals because the copper market is highly concentrated among a very few number of mines,” Barclays Investment Bank commodities research analyst Dane Davis told Metal Bulletin sister title AMM. “Copper is particularly vulnerable to copper disruptions; one mine disruption can change the price.” Yet even with 450,000 to 500,000 tonnes of copper production cut so far this year due to unforeseen circumstances — including power shortages in Zambia, striking workers in Chile and inadequate...


August 05, 2015

06:39 GMT