Kitco News) - Harbor Intelligence looks for copper prices to extend early-2012 gains over the next few months. “Global end-user demand gained traction across the board in January and preliminary data for February showed further improvement in China and Europe,” Harbor says, also citing the decline in London Metal Exchange inventories in recent months. Meanwhile, supply concerns remain price supportive, analysts say. “Our best estimate is the market registered a deficit of 367,000 (metric) tons in 2011 vs. 341,000 tons in 2010. Inventories in terms of weeks of consumption continued to fall and should continue to decline, as we expect a 498,000
tons deficit for 2012.” Harbor also points out that January-April is normally the seasonally strong period for copper, and funds have begun to bet on higher prices again. “Overall conditions suggest it is reasonable to expect the underlying upward trend to remain in place and see prices above $4.20 (per pound) before May ends,” Harbor says.
