Copper Sees Improved Sentiment on Supply Issues
posted on
Apr 09, 2015 09:25AM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Tuesday April 7, 2015, 3:15pm PDT
By Teresa Matich, Exclusive to Copper Investing News
(apologies if anyone has already posted this)
Furthermore, according to Reuters, the country’s state copper commission, Cochilco, lowered its production forecast from 6 million tonnes to 5.94 million tonnes this week. The change was due to problems caused by an ongoing drought in the region in addition to the recent floods. ”There is an effect, albeit of low significance, from operations temporarily halted (mostly Codelco’s Salvador and JX Nippon’s Caserones) due to the heavy rains,” said Cochilco in a statement.
According to The Wall Street Journal, those problems are causing some investors to turn bullish on copper. Daniel Belchers, a commodities fund manager at London’s Columbia Threadneedle, told the Journal that his fund previously invested less than suggested in copper, but has become bullish in recent weeks. “With all of these mines now coming off or having a lot less production than we were expecting, we will be in a deficit market this year,” he said.
Similarly, Cormark Securities has said that it’s staying bullish on copper in the long term, while Macquarie previously upgraded the base metals sector from “neutral” to “overweight,” citing copper supply and demand fundamentals as a key driver behind that decision.
Of course, not all predictions are positive. Jeremy Baker of the Vontobel Belvista Commodity Fund in Zurich told the Journal that “there is a risk that copper could drift lower again” on worries over China’s economic outlook. Still, base metals investors will no doubt be encouraged by some of the positive sentiment surrounding the metal, and will be watching for further updates on the outlook for global copper supply and demand.
http://copperinvestingnews.com/23769-copper-price-rise-supply-issues-chile-china-bhp-rio-tinto-entree-gold.html