Doesn't sound like HGO should be locking in too much hedging at...

Doesn't sound like HGO should be locking in too much hedging at the moment.

Copper set to take off, Citi says

DAVID ROGERS

As copper hits 14-month highs, Citi has an urgent message for consumers and investors: buy now or pay the price of cost increases and missed opportunities in a new secular bull market.

Copper’s first secular bull market this century was led by China’s urbanisation and industrialisation.

In the early 2000’s the commodity shot up from $US1,600 to $US8,800 a tonne in just three years.

Citi says such explosive price gains may also be possible over the next few years if a cyclical recovery adds to the bullish long-term forces that it has identified.

Citi said copper’s second secular bull market this century was taking hold, 20 years after China urbanization and industrialization-led secular bull market.

That bull market was muted by cyclical weakness in the past 18 months.

This week Mr Layton revised up his short-term price forecast to $US9,700 from $US9,200 a tonne. His base case has copper averaging $US10,000 a tonne by the December quarter and $US12,000 a tonne in 2026.

His bull case has copper rising more than two-thirds of its current value, to over $US15,000.

“Explosive price upside is possible over the next two-to-three years too, if a strong cyclical recovery occurs at any time,”