Little 'conviction' on Copper after CESCO meeting: Deutsche Bank

Metal Stocks  |  2012-04-25 04:46:25   |   By Paul Ploumis

Following the Chilean copper confab, CESCO, there was little change in the conviction in the view of copper prices by conference-goers, said Deutsche Bank in commodity research note.

LONDON (Scrap Monster): Following the Chilean copper confab, CESCO, there was little change in the conviction in the view of copper prices by conference-goers, said Deutsche Bank in commodity research note.

The bank itself says it does not have a high conviction on the view of copper prices, but adds that it is “mildly constructive” on copper prices over the course of 2012, with London Metal Exchange prices to average about $8,600 a metric ton.

According to the bank, the European sovereign debt situation weighs over the market as a bearish influence. Bullish influences include likely stimulus programs by China and the U.S., with the potential for a European stimulus program to keep the eurozone unified.

“Therefore, in an environment of improved U.S. and Chinese growth and supported European conditions, combined with challenged global copper supply growth, copper scarcity could remain a characteristic of the market,” Deutsche Bank concluded.

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