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Norilsk Nickel Updates on Copper

  • Thursday, September 4, 2014
  • Source:ferro-alloys.com

  • Keywords:copper market metal
[Fellow]The beginning of 2014 was marked by a weakness in copper market with prices falling below USD 6,500 per tonne in March. This negative trend was mostly driven by the concerns about the financial stability of Chinese companies, which had used copper as a collate...

The beginning of 2014 was marked by a weakness in copper market with prices falling below USD 6,500 per tonne in March. This negative trend was mostly driven by the concerns about the financial stability of Chinese companies, which had used copper as a collateral and therefore could sell large volumes of the metal to the market.

However, in the second quarter of 2014 prices recovered and reached USD 7,000 per tonne already in May driven by the more positive outlook of US and EU economies as well as strong copper consumption in China. The average price in H1 2014 stood at USD 6,916 per tonne, down 8% YoY.

We expect copper market to remain fairly balanced as the incremental production will be matched by the consumption growth. The level of exchange copper inventories remains relatively low, keeping copper price vulnerable on the upside to potential supply disruptions and demand recovery in the developed world.

  • [Editor:sunzhichao]

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