RE: Upwards18 Jul 2018 23:08
Bottled.nice spot....Copper prices poised to go 'on steroids,' Citi analysts say
Jul. 18, 2018 12:44 PM•SA Editor Carl Surran
“Prepare for a decade of Dr. Copper on steroids,” as the metal’s slump amid a deepening global trade conflict offers a long-term buying opportunity, Citigroup analysts say.
Citi sees average annual copper prices at $8K/metric ton in 2022 and passing $9K/metric ton by 2028 under its baseline scenario; the metal closed yesterday at $6,152/ton in London.
“We look beyond the potential trade war to longer-term copper market fundamentals and we find that current prices of $6,200 a ton are nowhere near high enough to enable the market to clear,” Citi says. “Copper is set to outperform most other commodities under our coverage over the coming decade on a lack of mine supply growth."
Citi adds a note of caution for the near term, saying copper would fall "materially lower before it goes higher again" if a full-blown trade war materializes.