IMO think copper should remain strong, according to this report...

IMO think copper should remain strong, according to this report anyway...

Latest GFMS metals consultants view on copper:

"Copper prices continue to find support >$8,500/t due to low LME inventories, increasing cost of production at mine site and smelters (eg. power, fuel, acid), dollar weakness, supply disruptions

Copper market in a 66,000t deficit in 1Q08

Global consumption has remained flat – lower in EU and US related to slowdown in construction etc; offset by continued Chinese demand though this appears to be in a seasonal slowdown

China remains heavily reliant on copper concentrate imports

Global mine production was down 9.5% in 1Q08

Supply tightness likely to overshadow any demand weakness

Continued strikes in Peru (worlds 2nd largest copper producer) have provided recent price strength

Power, fuel and acid (required to leach copper oxides) prices in Chile remain extremely high; reportedly acid prices have not peaked and there is a severe shortage

Any sign of recovery in US construction and/or manufacturing sector could provide additional reason for prices to move higher"