copper fundamentals

Starting a thread to track some of the fundamental news. Think it is pertinent to keep our eye on the underlying supply situation as AVB approaches becoming a miner.

LONDON, Dec 6 (Reuters) - Xstrata , the world's fourth-largest copper miner, expects to benefit from supply troubles hitting the metal globally, it said on Tuesday, as it reported increased resources and said its own key projects were on track and on schedule.

A drastic fall in output at Chile's Escondida, the world's largest copper mine and majority owned by global miner BHP Billiton , as well as ongoing strikes at Freeport-McMoRan
copper operations and weather disruptions have hit copper output and are set to keep the market in deficit this year.

...Demand, the company said, was also holding up despite a "slight" softening in China, partly thanks to low stocks and an easing after a liquidity squeeze that has hit smaller Chinese buyers.

"There has been a slight (softening in demand), but we see that in a range and we are not seeing a market shift in sentiment or demand from China," Sartain told reporters.

"Demand is important but it is a balance, you can't just turn on copper supply... If you are going to have less strong growth in China, you look at the supply side of things and at the plausibility of some of these projects coming onstream. That is what gives us confidence."