In the following article it states "the world’s top producer of the industrial metal, said the oversupply is likely to last through this year and next, bringing prices down again to around $2 to $2.10 a pound.".
I know enough to be leery of all price predictions. He might well be right but the "experts" have so often been so wrong. They just to predict the status quo extending into the future.
But what I don't understand is "Where is this oversupply of copper"? I'm not seeing any oversupply in the 3 major inventory stockpiles (SHFE, LME, and COMEX). I understand than demand MAY slowdown causing a oversupply BUT people talk as if it has already happened. INSTEAD of an oversupply I see a market that is getting tighter and tighter. Can someone tell me what I'm missing?
http://www.mining.com/worlds-top-copper-miner-sees-metal-at-2-a-pound-for-at-least-two-years/
World's top copper miner sees metal at $2 a pound for at least two years
Chile's Codelco ruled out the possibility of copper prices rising above $3 a pound.
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But there still is considerable uncertainty around China, where a slowdown in growth has caused commodity prices to hit historical lows. On Tuesday, Moody’s cut its outlook on the country to “negative” from “stable,” blaming the government's weak fiscal strength and uncertainty about the authorities' capacity to implement reforms for the downgrade.
Copper is a key component in manufacturing of everything from high tech devices to houses, and it is often looked to as a gauge of economic health. China’s speedy expansion of recent years has been a strong demand driver, but weakening conditions there and robust global production have come to weigh heavily on the market.
That is why some, such as Codelco, are simply not buying into the current rally.
