Copper
2008-12-01,Weekly summary 24-28.11.2008
Copper rebounded from $3395 to $3650 per ton in London as investors reacted positively on the new rescue plan for Citibank. That biggest global bank is to received from the U.S government 20 billion dollars and guarantee on considerable part of its deposits. It is obvious that market is currently witnessing bullish momentum as a result of the U.S. government actions.. As Chilean Copper Commission predicts the average copper price may fluctuate around $3550 per ton next year.
Copper slided slightly to $3579 per ton in London as investors took profits from $300 rally during the previous day. According to statistics of International Copper Study Group supply of the metal outpaced demand by 75000MT.
Copper gained to $3694 per ton in London as market reaction on China's interest rates reduction. Despite all governments' efforts focusing on boosting global economy the base metal market may still approach a decline of 10%-15%. But one of the positive aspect is that global economy should hit the bottom on raw materials market before half of the next year.
Copper was quoted at $3660 per ton at the LME as investors discounted China's interest rates cut and consecutive U.S helpful package injecting 800 billion dollars into banking system. The positive climate on equity markets had also favorable impact on base metal market reflecting in quite a strong positive correlation. Moreover the market has witnessed the first drop in copper inventories since 21 October (875 ton down to 286350 MT).
Copper fell to $3587 per ton in London as the level of metal's inventories exceeded 4 year high reaching 291650 MT at the LME. According to RBS estimations average copper price shall be around $5550 per ton next year and supply may outpaced s demand by 250 000MT and
500 000MT in 2010.
Some tech. levels:
Res:$3760 - $4130 - $4330
Sup:$3600 - $3360 - $3200
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