Another bullish article for copper. http://seekingalpha.com/article/3847256-long-industrial-metals-2nd-best-trade-year-oil. It includes these comments about copper.
2- Copper: Perhaps the sharpest commodity supply crunch in 2016 will be in copper which may send prices soaring in 2016 (check my recent article published on FXempire"Copper Supply Crunch in 2016 May Send Prices Soaring"). Copper is the world's 3rd most widely used metal, mainly in industries such as construction and industrial manufacturing. Many experts recently issued warnings about the looming production shortage in the commodity:
- The reduction in supply could cause prices to spike in 2016, said the International Copper Study Group who revised down copper production forecasts in October 2015, and said that there will be 130,000 million tonnes deficit in 2016.
- "We expect the copper market will record a deficit before the end of 2016", analysts at Intesa Sanpaolo, stated in October 2015.
- According to a study done last December by Wood Mckenzie, 2016 will be the year where production cuts will start to be felt, while demand remains strong. In the longer term, Wood Mackenzie predicts a 10 million tonnes deficit by 2028.
- EIU (Economist Intelligence Unit) in its Economic and Commodity Forecast, July 2015, sees the price of copper in 2016 at around $3 per pound and steadily climbing thereafter (current copper price is at $2.0).