Copper Demand to Beat Supply

Source:

"Copper demand may outstrip supply in 2011. . ."

Copper demand may outstrip supply in 2011 for the first time in four years as China, the world's biggest consumer, sustains purchases and as ore grades decline.

The demand-supply gap will be the extent of 200,000 metric tons. Copper, used in pipes, tubes and wires, faces a "deepening supply crunch" and record prices are highly likely in the next two years, Barclays Capital said in a report on July 27. Prices for immediate delivery will average $7,763 a ton next year as a market shortage widens, the bank said. The spot price in London has averaged $7,088 this year.

Commodity assets under management surpassed $300 billion for the first time in July, Barclays Capital said in a report. Inflows were $5 billion compared with June's $2.3 billion, Barclays said

Financial Technologies (FT) Group's Singapore Mercantile Exchange has received final approval from Singapore authorities to operate as an international commodity and currency derivatives exchange there.

SMX is the first pan-Asian multiproduct commodity and currency derivatives exchange. The Monetary Authority of Singapore (MAS) granted 'Approved Exchange' status to SMX to operate out of Singapore as a regulated and licensed exchange, a company release said.

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