CITIC Construction Investment Sees Copper Prices With Room to Test 110,000 This Year

CITIC Construction Investment said copper prices have recently tried to break above the top of their trading range, citing lower expectations for U.S. Federal Reserve rate hikes this year, frequent supply disruptions, steady demand growth, and a supply-demand gap. Jiemian News reported that the brokerage also pointed to sharply uneven global inventories, with COMEX holding 700,000 tonnes, the LME about 280,000 tonnes, and domestic inventories near 100,000 tonnes. The report said China’s low inventories have tightened spot market liquidity, leading spot premiums to rise alongside futures prices. It added that copper prices are likely to advance steadily and have the momentum to challenge 110,000 this year, and recommended prioritizing copper mining resource stocks.