Copper supply to move into deficit in 2017 for the first time in 6 years - Citi
|Analysts at Citi appear to have turned optimistic on the red metal, projecting supply deficits alongside recovering Chinese demand to keep the prices higher this year.
Key Quotes via CNBC:
"Copper supply set to under-perform demand for much of the next half decade. As the global economy departs from several years of stagnation, so too does the outlook for copper pricing.”
“The combination of stronger than expected Chinese demand, a clear lack of visible copper inventory build, an end to cost deflation, and the U.S.-centric reflation story after the Trump election victory sparked positive price momentum through the latter stages of 2016,"
"The much-vaunted wall of supply that hit copper in 2016 failed to drown the red metal in excess supply."
Meanwhile, COMEX copper futures rally +0.81% to $2.73/ pound, extending the rebound from $ 2.682 levels.
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