(BN) Copper Faces 2-Year Shortage, Peak Over $10,000, Trafigura Says
2010-12-07 09:29:56.282 GMT
By Claudia Carpenter
Dec. 7 (Bloomberg) -- Copper supplies will lag demand for
at least the next two years, with prices peaking over $10,000 a
metric ton in the second quarter next year, according to
Trafigura Beheer BV, which considers itself the world's second-
largest trader of industrial metals.
Copper will move from a balanced market this year to
shortages of 800,000 tons in both 2011 and 2012 at current
prices, Simon Collins, head of refined metals at Trafigura in
Lucerne, Switzerland, said in an interview yesterday. That's
even before demand climbs as exchange-traded funds backed by the
metal are introduced, he said.
Such funds "will result in higher prices, which in turn
will affect price-sensitive demand and price-sensitive supply,"
Collins said. "Consumers are concerned about an ETF.
Inventories are already relatively low."
Copper prices are up 21 percent this year, and reached a
record $8,973.50 a ton today, partly as manufacturers and other
buyers who anticipate shortages build inventories to meet demand
for next year, Collins said. Imports into China, the world's
largest consumer, typically are strongest in the second quarter,
helping to boost copper prices and leading gains in lead, nickel
and aluminum, he said. Copper stockpiles tracked by the London
Metal Exchange have slid 30 percent this year.
In 2006, the copper market was also forecast to have a
large deficit when higher prices brought the market further into
balance than originally estimated, Collins said. If prices rise,
next year's deficit may be only 400,000 tons, he said.
Copper Trading
Trafigura trades about 1 million tons of copper a year,
Collins said. Glencore International AG is the largest trader of
industrial metals, according to Trafigura estimates.
Trafigura is preparing for more metals demand by customers
and increasing its warehouse capabilities through its subsidiary
NEMS, with plans to expand in the U.S. next year for the first
time with storage facilities in Baltimore and New Orleans, as
well as in China, Collins said. He declined to give an estimate
of the investment.
Copper demand may rise if JPMorgan Chase & Co., BlackRock
Inc. and ETF Securities Ltd. start ETPs backed by the metal, in
line with plans announced by all three companies in October.
For Related News and Information:
Top commodities: CTOP <GO>
Top shipping: SHIP <GO>
Searches: NSE <GO>
Commodity curves: CCRV <GO>
--Editors: Dan Weeks, John Deane.
To contact the reporter on this story:
Claudia Carpenter in London at +44-20-7330-7304 or
ccarpenter2@bloomberg.net
To contact the editor responsible for this story:
Claudia Carpenter at +44-20-7330-7304 or
ccarpenter2@bloomberg.net
Subscribe to:
Post Comments (Atom)
ShareThis
MasterSearch
Categories
MasterFeeds
News
Finance
china
USA
money
stocks
debt
Commodities
United States
Gold
Venezuela
Dollars
bonds
Markets
economics
trading
Banks
FED
Hedge funds
Asia
LatAm
Oil
default
Israel
credit
metals
Mining
international relations
russia
central_banks
CapitalMarkets
HFT
democracy
zerohedge
Euro
Silver
elections
India
Iran
Japan
Middle East
SEC
bailout
Africa
Europe
Liberalism
insider trading
Agriculture
FX
Tech
Trade
UN
VC
bitcoin
copper
corruption
real estate
Brazil
CoronaVirus
ForEx
Gold Silver
NYSE
WeWork
chavez
food
Abu Dhabi
Arabs
EU
Facebook
France
Hamas
IPO
Maduro
SWF
TARP
Trump
Turkey
canada
goldman
government
recession
revolution
war
Cannabis
Capitalism
Citigroup
Democrats
EIA
Hezbollah
Jobs
Lebanon
NASDAQ
NYC
PDVSA
Palestinians
Saudi Arabia
Softbank
Stats
Syria
Ukraine
demographics
ponzi
socialism
13F
AIG
Advertising
Berkshire Hathaway
CBO
Cargill
Colombia
Cryptocurrency
ETF
Ecuador
Emerging Markets
Eton Park
Google
Housing
IMF
LME
Mindich
Mongolia
OPEC
PIIGS
Pakistan
Palantir
Paulson
Pensions
Peru
Politics
Potash
QE
Scams
Singapore
Spain
UK
Yuan
blockchain
companies
crash
cybersecurity
data
freedom
humor
islam
kleptocracy
nuclear
propaganda
social networks
startups
terrorism
Airlines
Andorra
Angola
Anti-Israel
Apple
Automobiles
BAC
BHP
Blackstone
COMEX
Caracas
Coal
Communism
Crypto
DRC
DSK
Double-Dip
EOS
Egypt
FT
Fannie Mae
Form
Foxconn
Freddie
GM
Gbagbo
History
ICO
Iraq
Italy
Ivanhoe
Ivory Coast
JPM
Juan Guaido
Lava Jato
Libya
London
M+A
MasterEnergy
Mc Donald's
Miami
Mugabe
Norway
Norwegian
Odebrecht
Oyo
PA
PPT
Panama
QE2
Republicans
Rio
Ron Paul
ShengNu
Soleimani
South Africa
Tokens
Tunisia
UN Watch
UNESCO
UNHRC
Uber
VW
Wyclef
anti-semitism
apparel
bang dae-ho
cash
censorship
chile
clothing
coffee
cotton
derivatives
emplyment
foreclosures
frontrunning
haiti
infrastructure
labor
levi's
mortgages
philosophy
shipping
social media
treasury
women
No comments:
Post a Comment
___________________________________
Commented on The MasterFeeds