COPPER SUPPORTED BY LOW INVENTORY AND HIGH DEMAND PROSPECTSNo doubt about it, copper is heading higher and Candente Copper just keeps increasing in value!
Jan 13, 2021
LONDON — Copper prices held steady on Wednesday as low inventories and prospects for healthy demand this year were offset by a firmer dollar and below-consensus data from top consumer China.
Benchmark copper on the London Metal Exchange (LME) traded little changed at $7,970.5 a tonne in official rings. Profit-taking has pushed copper prices down from last week’s eight-year peak above $8,200.
BoA Securities analyst Michael Widmer said stocks in LME-registered warehouses suggest robust fundamentals.
“2021 will be a year of reflation, higher growth and strong demand for metals,” Widmer said, adding that he expects a small copper market deficit this year with demand rising to 24.76 million tonnes, up 6% from 2020.
STOCKS: Copper stocks in LME-registered warehouses, at 102,550 tonnes, are down more than 40% since last October.
Canceled warrants – metal earmarked for delivery – at 36% suggest that more copper is likely to leave LME warrant.
Concerns about copper availability on the LME market have narrowed the discount for cash copper against the three-month contract.
China’s economy is forecast to grow 8.4% this year, against estimates of about 2.1% for 2020, a Reuters survey showed.