Forecasts and market analysis based on price assessments from Fastmarkets MB and Fastmarkets AMM

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January 2020 | Base Metals

Copper: Expect a pick-up in demand growth

Given the high sensitivity of copper prices to macro factors, we expect copper to continue to move higher in the near term considering the more supportive macro picture. For the whole of 2020, we expect an acceleration in global refined copper consumption growth, which should underpin a deficit in the refined copper market and, therefore, support a broad upward trajectory in copper prices.

Sharp price recovery has further to run...
The LME copper price has rebounded sharply since it hit an intraday low of $6,089 per tonne on January 3, as the risk-off response to the escalation of US-Iran geopolitical tensions proved short-lived. However, its quarter-to-date average dropped to $6,175 per tonne last week, compared with $6,185 per tonne in the prior week, around $225 per tonne or 3.5% below our Q1 2020 base case target of $6,400 per tonne. macro factors are mostly positive

Copper’s cross-correlation with the rest of the base metals has moved higher since the start of...


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