0058 GMT [Dow Jones] Copper market focused on actions of China's State Reserve Bureau, says Standard Bank. So far expectations have been that SRB copper purchases will be around 300,000 tons, taking advantage of slump in prices and mopping up surplus that emerged end 2008, early 2009. But notes mounting speculation that SRB may increase purchases to around 1 million tons, with another 700,000 tons to go. Standard pegs expected copper surplus for 2009 at 255,000 tons, after estimated 212,000-ton surplus in 2008; "if the SRB purchases do approach the 1 million ton mark, and assuming they are made over the course of this year rather than over a 2- or 3-year period, then we may end the year with the refined market in deficit." Adds impact on prices "potentially look very bullish." But cautions on SRB price sensitivity; SRB activity will likely provide a floor for prices, reiterates view copper prices have bottomed. LME 3-month copper rallies $90 in post-kerb trading on Fed news, rises to $3,845/ton.(EFB)
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(END) Dow Jones Newswires
March 18, 2009 20:58 ET (00:58 GMT) |
