Quarterly Three Year Copper Forecast - the prospects to 2012

China continues to support the copper market with its massive buying. The build of unreported stocks, partly associated with arbitrage opportunities that were available in the early part of the year, may lead to reduced buying (imports) by China in the summer months - certainly anecdotal evidence points to this and prices may come off from their recent highs.

Looking further out over the forecast period, the prospects for copper's fundamentals look positive. The supercycle argument of strong demand growth from emerging economies and structural supply shortages (lower grades lack of investment etc) still appear fairly valid. We have raised our price forecasts and have also raised the probability ascribed to our high case projection.

Click on the link below to read a detailed Executive Summary which highlights the prospects for the copper market under three different scenarios. GFMS Metals Consulting produces Quarterly Forecasting Services on all the base metals.

> Quarterly Three Year Copper Forecast - Executive Summary.

We are constantly monitoring the latest market and price developments in the steel market. Our latest views on the prospects for the flat products sector and associated raw material markets are located in Market Analysis.

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We are constantly monitoring the latest market and price developments in the steel market. Our latest views on the prospects for the long products sector and associated raw material markets are located in Market Analysis.

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In our regular analysis on the global steel flat product markets, we note that prices have increased in May and early June. Despite talk of "green shoots" of recovery much of the improvement has been driven by the end of the inventory cycle rather than necessarily by the beginnings of a sustained upturn in demand. Given the exceptionally low utilization rates, the market will remain vulnerable to oversupply.

It is against this background that analysts at GFMS Metals Consulting are working on the June 2009 issue of The Steel Market Strategic Briefing, our bi-annual five year forecast service for the steel flat products sector. To receive more information on this report and for details on the special offer please click on the link below.


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