Copper prices will recover from recent declines through 2012

Posted by Juan / on 09/28/2011 / 0 Comments

Copper prices continue to show volatility and tending downward during the remainder of the year but would recover the low level at which state and resume the rally into next year, told BNamericas Nicholas Snowdon analyst at investment bank Barclays Capital, headquartered in the UK.

"At the moment different justifications for the fundamentals of the copper and the real behavior of the price," said analyst commenting on the U.S. $ 3.729 / lb with that closed the metal on Thursday, its lowest price since Sept. 22 last year .

"It is fitting to note that the price of the commodity in the short term will remain vulnerable to downward pressure due to the macroeconomic outlook, which is highly uncertain and volatile, regardless of the evolution of the foundations of support," he said.

However, the overview of the fundamentals do not justify the price declines seen in recent times, the analyst said.

"As a result, we believe that more conclusive progress toward solving the debt crisis in Europe and positive economic indicators in the U.S. and China in the fourth quarter should provide the basis for prices to go up again as we enter the 2012, "said the expert.

China has continued to provide a positive outlook on the demand for copper imports while supply behavior remains poor.

"Under normal macroeconomic circumstances and given the deficits generated by the restricted supply of mine justify price increases and thus occur in the future, once this storm of uncertainty will dissipate," he said.

BN Americas 



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