Copper Update: Upside Risks To Average Price of US$6,500/tonne In 2010

Core View: We continue to note upside risks to our core view of an average price of US$6,500/tonne in 2010, which we set out in December (see 'Commodities Forecast: Copper To Average US$6,500/tonne in 2010', December 10, 2009). Three-month copper is currently trading at US$7,512/tonne, and while the metal has been trading in a volatile fashion in recent weeks, we see potential for copper to remain bid in coming months. The global refined copper market was in surplus in 2009, but we see strong demand in 2010 and potential for additional labour-related supply-side risks in 2010, which should keep prices supported.

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