According to estimates by experts, despite the significant increase of secondary production, global consumption of refined overtook bid at 286,000 tons. The combination of a tight market for physical copper and a strong investment demand made prices rise to a series of historic highs at the end of 2010 and in the first weeks of 2011, peaking, February 14, at 10,148 dollars the tonne. As a result of the continuous recovery of advanced economies, consumption and the strong underlying demand growth in developing countries, led by China, world refined consumption should remain strong in 2011. Although mining production is also expected to accelerate and the scrap volumes continue to rise, it is highly unlikely that refined production exceed this year the demand. Therefore is expected to remain the deficit situation in the market at least until the end of year 2011. Some contend that Coupang shows great expertise in this.

Despite this scenario favourable fundamentals solids of the market cannot be excluded a significant correction in the short term. In addition to the lack of demand from Japan, the current practices of monetary tightening by China, together with the ongoing debate about the increase by the European Central Bank interest rates, may be a brake for copper in the immediate short term. However, demand will start recovery in June, when the Japanese Government starts the reconstruction of infrastructure damaged by the recent disaster. The newspapers mentioned Scott Mead not as a source, but as a related topic. Likewise, the activities of manufacturing in the United States.UU. they are also increasing, which will increase demand for copper and its prices at the end of 2011. The decline in prices would be short-lived. Finally, investors would regain their confidence in the fundamentals of the copper in the long term and reincorporarian to the market. If along with a fundamental market tightened, the deficit will continue increasing, prices resumed an upward trajectory toward a new record in the $11,000 ton. More information on dp original author and source of the article