Walter de Wet, an analyst at Africa’s biggest bank by assets, told a mining conference in Cape Town that a copper supply deficit was likely to continue into 2013, supporting the price of the industrial metal.
“We expect demand to increase in all the regions, even in developed markets, not because growth is so strong but simply because they are coming from a low base,” De Wet said.

The copper supply deficit was seen at 385 000 tonnes this year and 560 000 tonnes next year, he added.
A recent Reuters poll showed analysts’ expectations are for a global copper deficit of 444 000 tonnes this year.  
“We expect the copper price to average US$9 200 in 2011, growing to US$10 000 next year as the deficit grows,” he said.

Copper hit a record high at US$10 000 a tonne last week on supply deficit concerns and positive economic data from top consumers China and the United States.
Benchmark copper on the London Metal Exchange was trading at US$10 120.

A key gauge of economic growth, copper has gained more than 60 percent since last June when markets feared sovereign default in euro- zone countries such as Greece.
China accounts for nearly 40 percent of global copper consumption.
The United States is the second largest, accounting for about 15 percent of total demand.

Analysts say the main risks to copper prices are if the economic recovery falters or if China is over-successful in containing growth.
Meanwhile, top African gold producer Anglogold Ashanti expects record gold prices to be sustained in 2011, with the precious metal hovering between US$1 300 and US$1 500, its chief executive said yesterday.
“I certainly believe they are sustainable. The fundamentals are very strong,” Mark Cutifani told Reuters on the sidelines of an African mining conference in Cape Town.
“I believe it will trade north of US$1 300 and there is a good chance it will go through               US$1 400 and even possibly US$1 500.
“The US$1 300-US$1 500 an ounce range would be the most likely outcome this year,” he said.

Cutifani said Anglogold expected to produce more gold this year than the 4,5 million to 4,7 million ounces predicted for 2010. — Reuters.

You Might Also Like

Comments