Goldman Sachs remains bearish on the outlook for the copper price in 2014, with a target price of $6,200/mt, the investment bank said late Wednesday.
“After selling off from $7,450/mt to $6,320/mt in mid-March, driven by Chinese property sector weakness and ongoing above-trend supply growth, London Metal Exchange copper prices have retraced a third of their losses, stabilizing around $6,700/mt. We reiterate our bearish 2014 copper view, and maintain our forecast that the price will fall to $6,200/mt this year,” a research note said.
The copper cash price saw the biggest increase at 0.6 percent on the LME, finishing at $6,739 per metric ton for Wednesday, May 7. Also on the LME, the copper 3-month price rose 0.5 percent to $6,699 per metric ton.
The cash price of primary Japanese copper finished the day at JPY 711,000 ($6,990) per metric ton following a 0.4 percent increase. The price of US copper producer grade 122 saw little price change on Wednesday at $3.77 per pound. The price of US copper producer grade 102 held steady on Wednesday, remaining around $3.96 per pound. The price of US copper producer grade 110 saw little movement on Wednesday, closing out around $3.77 per pound.
Chinese copper closed mixed yesterday. Chinese copper bar ended the day at CNY 50,200 ($8,064) per metric ton, after the 0.2 percent drop yesterday. The cash price of Chinese copper fell 0.2 percent to CNY 50,400 ($8,096) per metric ton. The price of Chinese copper wire remained steady at CNY 49,690 ($7,982) per metric ton. The price of Chinese bright copper scrap saw little movement at CNY 44,300 ($7,116) per metric ton.