copper inventories might be much tighter Also In the News (C-FM) First Quantum Minerals Ltd
The Financial Post reports in its Friday, May 23, edition that copper stocks could be set to rally this year. The Post's John Shmuel writes that information released in the past week suggest copper inventories might be much tighter than expected. TD Securities analyst Greg Barnes says, "With copper concentrate exports from Indonesia still in limbo, Chinese copper demand apparently quite healthy, and reports that China's State Reserve Bureau purchased 200,000 tonnes of copper in recent months, the much discussed 300,000-tonne 2014 surplus may have just disappeared." The London Metal Exchange says copper inventories have dropped below 200,000 tonnes, the lowest level since October, 2008. Mr. Barnes notes that on-warrant copper inventory, which is metal that is actually available to the market, is down to only about 100,000 tonnes, the lowest amount since May, 2008. CIBC World Markets analyst Tom Meyer says copper's tightness could create rapid price spikes this year. Mr. Meyer says the risk-reward tradeoff for investors in copper companies is becoming increasingly favourable. He identified First Quantum Minerals and Capstone Mining as two particularly attractive choices in the copper space.