Copper Outlook, page-50

Gve, at the moment. Lowest copper inventories at the LME in 5 years.

63, 200 tonnes. Over the last 30 days alone fallen from 84,000 tonnes. 25% store shrinkage.

Over at Comex 23,900 tonnes. 30 days ago 33,200 tonnes. 28% store, shrinkage.

Demand is 25m tonne pa. So we have 1 day buffer.

If stores continue to drop at same rate, the world could be in a problem within the next 60 days.

On the other side, rio and bhp are saying at the current copper price, no economic sense to build new mines or invest heavily into finding new copper.

I'd not be surprised to see copper at 14,000 US per tonne in the second half of this year based on supply % demand and also to get the majors to bring on supply.

Rio has said they can add 500k extra output pa, but only when the markets are screaming for it.

We may see supply controlled, like oil is to get a higher price here.