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Copper to hit USD 7,000 per tonne in 2019 - Goldman Sachs

Metal News - Published on Thu, 10 Jan 2019

Image Source: South China Morning Post
Global financial institution Goldman Sachs forecasts copper prices on the London Metal Exchange will hit USD 7,000 per tonne in 2019 despite weak prices at the start of the year, according to its research note seen by S&P Global Platts. LME three months official copper prices marked USD 5,855 to USD 5,860 per tonne on January 3, which was lower than the 2018 low of USD 5,862 to USD 5,864 per tonne. Goldman Sachs revised down its near-term copper price forecast for the next-three months to USD 6,100 per tonne from USD 6,500 per tonne, next six-months to USD 6,400 per tonne from USD 7,000 per tonne, but maintained that the price will hit USD 7,000 per tonne at the year end. The LME three-months copper last traded above USD 7,000 per tonne in February 2018.

Goldman Sachs Commodity Research note said that “With our economists forecasting China growth bottoming in March-April and heightened uncertainties associated with the timing and magnitude of policy responses, industrial metals are likely face material headwinds and remain volatile in the first quarter of 2019.”

The bank, however, said Chinese policies to further restrict copper scrap imports from July 2019, and domestic housing demand would render support to copper prices. It forecast copper prices to average at USD 6,450 per tonne in 2019, almost at the level of the 2018 average. “For copper prices to drop to USD 5,000 per tonne, it would require a scenario where US dollar strengthens 5% and Brent crude drops to USD 42/bbl.”

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Posted By : Rabi Wangkhem on Thu, 10 Jan 2019
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