Global Copper Deficit May Support Prices – Morgan Stanley
The global copper market is at its biggest deficit in seven years, says Morgan Stanley, citing data from the International Copper Study Group. The group says the copper deficit is 466,000 metric tons for the January-May timeframe, versus a 250,000 surplus in the same period of 2013, Morgan Stanley says, while adding its full-year forecast is for a 90,000 ton deficit. ICSG also showed global use was up 15% year-over-year, with strong demand out of China seen. “Given this wide supply shortfall, we remain comfortable with our forecast for deficit conditions this year and next, as well as progressively higher prices,” Morgan Stanley says, also forecasting London Metal Exchange copper prices to average $7,165 a metric ton in the fourth quarter
TGS Price at posting:
30.0¢ Sentiment: Hold Disclosure: Held
