Scotiabank's Mohr Forecasts Higher Copper and Uranium Prices, Strong International Coal Prices

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Scotiabank economist Patricia Mohr noted that spot uranium prices rallied to US$64.50 in July and should move higher during the rest of this year

Scotiabank economist Patricia Mohr forecast yesterday that "China will likely step up its copper buying in the fall and may well announce ‘an economic stimulus package' to counter G7 weakness."

Mohr, Scotiabank vice president, economics, and commodity markets specialist, noted that "the strength in commodity prices was broad-based in July" as potash prices were up 277% and aluminum prices climbed to their highest level in two decades.

Although metals prices has subsequently unwound on news of a decline in the second quarter of this year, Mohr suggested that copper prices remained "exceptionally lucrative-buoyed by very low ‘visible' exchange stocks and supply disruptions (likely totaling about 750,000 tonnes in 2008)."

In her analysis, Mohr said Scotiabank's Metal and Mineral Index "rose significantly in July, as strong gains in potash, sulphur, lead, aluminum and copper-as well as precious metals-offset softer nickel and zinc prices." She noted that spot uranium prices rallied to US$64.50 in July and should move higher during the rest of this year...

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