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StockDoc60 on Aug 02, 2021 9:52am
Wake up ESM! A once in a lifetime opportunity is here
Goldman recapitulates $5 a pound copper price by end of 2021
( July 30/21 Mining .Com )
Excerpts:
In a new research note, Goldman Sachs says the copper price is “poised for the next leg higher” as short term headwinds fade and fundamentals point to a significant demand boost further out.
Goldman says the copper concentrate market remains very tight, creating a bottleneck for primary metal production in China, reinforcing its projection for a significant 430,000 tonne refined deficit in the second half of the year.
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Chinese headwinds are receding and demand in the rest of the world is robust, evidenced by premiums for physical copper in the US rising to five year highs.
Goldman believes the copper market has now moved beyond Beijing’s attempts to cool prices and the impact of sales from the country’s strategic reserves – the “final tool for generating downward price pressure (short of slowing overall activity)” – in fact creates conditions for price rises down the line:
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In the report Goldman reiterated its bullish forecast for a copper price of $11,000 a tonne (just below $5 per pound) by the end of the year and $11,500 by this time next year.
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