Latest Search
Quote
| Back Zoom + Zoom - | ||||
|
<Research>Citi Predicts CN Allocation to Push Copper to USD15-16K/ Ton in Coming Wks, but Rather Unlikely to Sustain
Recommend 20 Positive 35 Negative 22 |
||||
|
||||
|
According to a Citi research report, copper prices once made a big leap and surpassed the broker's recent target price of USD14,000 per ton. Driven by the momentum of rising precious metal prices and a weak USD, Chinese investors have been buying far beyond the weak physical fundamentals and the selling by investors outside China. Citi lacks confidence in the recent trend of copper prices. Over the next two weeks, it is likely that Chinese investors will further allocate or rotate funds into base metals to counter the rise in precious metal prices. Against the backdrop of parabolic increases in silver and gold prices, it is not impossible for copper prices to soar to USD15,000-16,000 per ton. However, Citi's base expectation is that even with increased resistance from the physical market to high metal prices, copper prices will remain around USD13,000 per ton in 2026, sufficient to achieve market supply-demand balance this year. In addition, while Citi said it would not be surprised if copper prices reach USD15,000-16,000 per ton, it lacks confidence in the sustainability of such buying. If sustained, it is more likely to occur in the short term before the Spring Festival, which could be a trigger for profit-taking. AAStocks Financial News Website: www.aastocks.com |
||||
Copied to Clipboard
 |
||||
