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Market Nuggets: BNP Paribas Sees Global Copper Deficit of 500,000 Metric Tons in 2011

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posted on Dec, 14 2010 @ 10:10 AM
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Forecast shortage of copper = copper price may become the new silver

Market Nuggets: BNP Paribas Sees Global Copper Deficit of 500,000 Metric Tons in 2011





(Kitco News) -- BNP Paribas looks for an underlying global copper of 200,000 metric tons this year and 500,000 for 2011. “Real tightness” exists, even without the advent of exchange-traded funds for the metal, says a report from analyst Stephen Briggs. He looks for global copper-demand growth to abate some to 4%-5% in 2011 from 9%-10% this year. However, constraints in mine supply exist, he says. There were few mine cutbacks in 2008-09, so restarts are adding little to capacity, plus ore grades are falling at many mines. BNP has some doubts about how popular physically backed base-metals ETFs will be with investors. Still, the market is so tight that even modest ETF tonnage “risk material being bid away from consumers,” BNP says. “We expect real tightness to be the main driver in 2011 and the market may move into unchartered waters of demand rationing,” BNP says. “So it is impossible to say how much further the copper price may rise, and it may not be helpful to join that now appears to be a bidding war among analysts.” BNP is forecasting $10,000 a metric ton for 2011 and $11,000 for 2012. “What we can probably say is that copper will continue next year to outperform other base metals, except perhaps tin,” BNP says.


www.kitco.com...




posted on Dec, 14 2010 @ 11:00 AM
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reply to post by wisdomnotemotion
 


Interesting, especially since it is being reported on the CBC website right now that Canada is going to revisit the idea of dropping the penny from it's currency.

(Canadian) Senate Comittee Eyes Penny's Future

On a side note, I noticed about a year ago that some Canadian pennies were magnetic: I found one stuck to the magnet on my phone case.



posted on Dec, 14 2010 @ 11:05 AM
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reply to post by [davinci]
 


That hardly matters anymore anyhow. Pennies have not been made of copper for a long time. To my knowledge 1982 was the last year Canadian or US pennies were made of copper. Since that time they have been more and more compositions of zinc. Try to melt a penny pre 1982 and one post 1982 you will find it very difficult to melt one pre 1982 and very easy to melt one post 1982 because of the large amount of zinc they used post 1982.

On a side note pennies pre 1982 are actually worth more than a penny because of the copper content.

edit on 12/14/2010 by SpaDe_ because: (no reason given)



posted on Dec, 14 2010 @ 11:05 AM
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A few weeks ago, JPM bought up a major position in copper.

I posted the link here, but not much attention. I expect we'll here more about JPM and copper.

www.abovetopsecret.com...


edit on 14-12-2010 by GirlGenius because: (no reason given)



posted on Dec, 14 2010 @ 11:08 AM
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reply to post by GirlGenius
 


Yes they did! I forgot about that already. Wasn't something like half the annual production of copper? I know it was a massive amount. They knew this was coming obviously.

OMG! it was half the reserves of copper and that isn't cornering the market?

edit on 12/14/2010 by SpaDe_ because: Reply to source added




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