News item
25 Aug 10
Getting on the band wagon
The experience with nearly all these consensus opinions shows that they are never really correct. The change in expectations can indeed show a tendency, but without enough primary information from the industry itself these expectations can only follow developments instead of actually anticipating them.
In this context it is fitting that analysts at the English bank, Standard Chartered, expect the copper price to increase to about USD 12,000.00/mt over the next two years due to its basic supply situation. Should this estimation be correct, then it will be very interesting to see how far copper will distance itself from the base metals aluminium and nickel, with its own supply and demand figures. Up to now these three metals have only run uncorrelated for relatively short times. If this then would still be true, independent of the actual consumer situation but certainly enhanced by a revived investment interest, with copper at levels of USD 12,000.00/mt, nickel would be at least USD 30,000.00/mt or more.
LME (London Metal Exchange)
| LME Official Close (3 month) | ||||
| August 25, 2010 | ||||
| Nickel (Ni) | Copper (Cu) | Aluminium (Al) | ||
| Official Close 3 Mon.Ask |
20,145.00 USD/mt |
7,095.00 USD/mt |
2,013.00 USD/mt |
|
| LME stocks in mt | ||||
| July 23, 2010 |
August 25, 2010 |
Delta in mt | Delta in % | |
| Nickel (Ni) | 116,814 |
118,302 | +1,488 |
+1,27% |
| Copper (Cu) | 419,650 | 402,425 | -17,225 | -4,11% |
| Aluminium (Al) | 4,409,975 | 4,452,700 |
+42,725 |
+0,97% |