HSBC said Tuesday that it is bullish on copper’s prospects, predicting a deficit for the industrial metal from 2016 on, and, as a result, increased its long-term average price forecast to $3.20 per lb.
Global Head of Metals & Mining Equity Research Andrew Keen wrote in an in-depth report that the bank predicts a cyclical peak in 2017, and as such increased its long-term price to $3.20 per lb from $2.95 per lb previously.
Growing supplies from copper mines are expected to peak in 2015, which would lead to a deficit between supply and demand post 2016, Keen wrote, underscoring that the longer term trend is likely to be bullish.
The day’s biggest mover was Chinese copper bar, dropping 0.7 percent to settle at CNY 49,800 ($8,119) per metric ton on Monday, September 15. The cash price of Chinese copper weakened by 0.7 percent, settling at CNY 50,000 ($8,152) per metric ton. The price of Chinese copper wire remained essentially flat at CNY 50,395 ($8,216) per metric ton. The price of Chinese bright copper scrap was unchanged at CNY 44,300 ($7,222) per metric ton.
At $3.81, the price of US copper producer grade 122 finished the market day up 0.5 percent per pound. After a 0.5 percent increase, the price of US copper producer grade 110 finished the day at $3.81 per pound. The price of US copper producer grade 102 increased 0.5 percent to $4.00 per pound. The cash price of primary Japanese copper held steady yesterday, remaining around JPY 768,000 ($7,156) per metric ton.
After falling for two days, the 3-month price of copper rose 0.5 percent on the LME to $6,835 per metric ton. Following a two-day drop, the cash price of primary copper increased by 0.4 percent on the LME to $6,856 per metric ton.