The copper price is expected to move downwards in the second half of the year with only supply-side disruptions possibly preventing a softening in price.
The Fortis Metals Monthly said today the bullish case for higher copper prices rested too heavily on the assumption that Chinese demand for refined copper will recover after the seasonally lower demand of mid-year.
The report said the Chinese government's determination to rein in the country's growth will be more evident after the Olympic Games event and risk will then be fully to the downside.
Futures prices for the next 18 months don't really reflect a drop. Usually when prices are abnormally high, you will see a drop in future periods and it's not evident with copper futures.
China may be reigning in inflation later, but India will be coming "online" - another Billion people. I have faith tht in the long term copper will rise, not the least reason being the long term direction of the dollar is down.
Copper price predicted to slide
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Posted - 06/12/2008 : 23:37:07
