Markets Speak: Copper Supplies Remain Key For The Markets

Copper....

Copper supplies in the world are becoming the most important reason to worry of the market players. The rise in inventories and calls that the world copper will turn into surplus this year and the next is posing its own set of dilemma for Copper participants and investors. Inventories of Copper has gained 44% since beginning of this year and now there are calls that the metal could be flooded in the world warehouses on account of rising supplies. The second biggest producer of Copper in the world Freeport McMoran expects that Copper output from its Grasberg mine will rise 30% in 2013 after a decline of 40% last year. The mine production was impacted by labour strike last year. The company produced in total of 1.662 million tonnes of Copper in 2012. LME three month Copper forwards was trading up by $ 31 per tonne at $ 7775 per tonne. The metal tested November 2012 lows when it declined to $ 7664 per tonne on 1 March 2013. The spending cuts of $ 85 billion in US were kicked on 1 March making metals nervous. Powered by Commodity Insights