Citi are bullish about the copper, expecting industrial metal to rise by as much as 10% over the next few months. Their forecast is based on the fact that Trump continues to signal that it is close to reaching an agreement with China and that the world economy continues to show a moderate recovery.
The bank expects the copper price to reach $ 6700 per ton in 2019, with demand driven by growth in China due to the dynamics in the construction sector and infrastructure investment.
The sale of conventional cars in China slows down due to the increase in sales of electric cars. They use more honey in their production. At the same time, inventories show that stocks are at a 10-year low, with inventory release in the second quarter of this year. It will be enough to maintain a deficit of 200,000 tonnes in 2019 and 2020.
Source: Financial Times
Trader Martin Nikolov