SP11 Jan 2019 01:07
News reports citing a recent report by Fitch Solutions point to a deficit in copper supply through to 2021 as a result of consumption growth responding to increased demand from the power industry and the rise in electric vehicle production as well as expanding demand from China.
Smelter closures by Vedanta in India at its Tamil Nadu plant, where the Indian Supreme Court is, today, reported to have upheld Vedanta’s appeal to allow the plant to re-open, and a temporary suspension at its Nchanga smelter in Zambia are adding to supply side pressure and may, in the short-term, restrict the availability of sulphuric acid to hydro-metallurgical copper producers using the SX/EW process to produce cathode copper directly.
Overall, however, against a backdrop of supply deficits, the outlook for emerging copper producers appears to be improving.
This plus what looks like a good outcome in the DRC elections and hopefully a sale of casa at a reasonable price soon, plus the markets generally are looking a bit more positive. Seems very positive but sp is still in decline.
What is it going to take? I guess the sale of Casa might be the catalyst.
Hopefully well start to get some good positive and regular newsflow coming soon and any distressed sellers will finish selling then the sp will start to rise.
Lucky i dont use stop losses. Patience and persistence pays.