Reuters reported that copper will not trade as high this year as previously thought with analysts downgrading their price forecasts as global growth for base metals slows from 2010.
However, the metal used in power and construction is seen climbing to USD 9,995 per tonne next year buoyed by tight global supplies and hopes of firm demand from top consumer China.
The survey of 41 analysts was carried out over the last three weeks. Not all contributors responded to all questions. The consensus of 40 forecasts showed the cash copper price would average USD 9,570 per tonne this year compared with a January forecast of USD 9,663 per tonne. Those compare with an average of USD 7,543 for the London Metal Exchange's cash contract in 2010.
Benchmark LME copper hit a record high of USD 10,190 tonne in February. It is now around USD 9,629 per tonne driven mainly by macro-economic sentiment due to the euro zone debt crisis and concerns over talks to raise the US debt ceiling, a necessary move to avoid a potentially disastrous default.
Mr Benjamin Westmore commodity economist at National Australia Bank said that "With current base metal prices already reflecting strong growth prospects for the emerging economies, we expect macroeconomic developments in the US and euro area to be increasingly important."
Investors have also been closely watching developments in China, the world's top copper consumer for demand signals after it did not follow its usual pattern of striding back into the market after its Lunar New Year break in February.
Mr Daniel Briesemann analyst of Commerzbank said that "The demand in the Chinese markets has not gone down but China has started using its stockpiles of copper instead of importing the metal. But that will change, as recent data suggests that copper imports have increased over the last 4 months."
China accounts for nearly 40 percent of global consumption estimated at around 21 million tonnes this year. Copper imports in China snapped two months of decline to rise 9.9% in June.
