LONDON/SYDNEY, Nov 21(Reuters): Copper steadied on Wednesday as investors weighed signs of physical supply tightness against long-standing expectations of market surplus, while hopes for another wave of stimulus in Japan and Europe also underpinned prices.
On the London Metal Exchange, cash copper prices traded at a $76.75 a tonne premium against the benchmark three-month price, close to the highest since June and signalling a shortfall in nearby supply. Longer term however, the market is still expected to move into surplus next year, with analysts polled by Reuters in October pegging the excess supply versus demand at 350,000 tonnes next year.
"China's State Reserves Bureau has accumulated up to 700,000 tonnes (of copper), that is what results in a deficit for this year. But what happens next year if the SRB stops buying, that's what the market is pricing in, it's saying there's too much copper (longer term)," said Nic Brown, head of commodities research at Natixis.
Three-month copper on the London Metal Exchange had edged up 0.2 per cent to $6,643 a tonne by 1119 GMT, paring a 1.1-per cent loss from the previous session. Copper prices are down 10 per cent so far this year.
News of a snap election and a delayed tax increase in Japan bolstered hopes for new stimulus measures, while the European Central Bank president said the ECB stands ready for more action if current efforts do not speed up the euro zone recovery.
Copper steadies on signs of tight supply near term
FE Team | Published: November 22, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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