SHANGHAI, Jan. 6 (SMM) – In 2015, LME copper tumbled 25.38 percent, and the index of SHFE copper plunged 20.15 percent. After a tumbling 2015, how will copper market perform in 2016? The followings are views of major institutes on copper outlook for 2016.
Societe Generale SA
The bank cuts the 2016 average copper price by 1.61 percent to $4,575 per tonne.
In 2016, the global copper consumption is estimated to be weak, with growth around 2.5 percent, flat with 2015. Supply, on the other hand, will see a surplus of 300,000 tonnes.
The group expects a bigger downward risk for metals and commodities in 2016, and sees another 10% drop in copper, iron ore, Gold and coal by the end of 2016.
The commodity market is not expected to improve in 2016, and may worse further.
Credit Suisse – Mining & Metals Team
The commodity market is estimated to improve slightly in 2016, with better outlook for copper, zinc and nickel.
Bank of America Merrill Lynch
Copper prices will rebound in the second half of 2016, as smelters are expected to step up production cuts.