The global supply and demand gap is expected to support copper prices

The world's copper market is expected to see the largest supply and demand gap in seven years, Morgan Stanley quoted icsg in a report on Monday.

The supply and demand gap in the world's copper market from 1 to 5 months is 466,000 tons, while in the same period of 2013, the supply surplus was 250,000 tons.

Copper is expected to have a supply and demand gap of 90,000 tons this year.

According to data released by icsg, global copper demand is expected to increase by 15% from the previous year, of which China has strong demand.

"Given that the supply gap in the global copper market is expanding. We still recognize that the supply and demand gap still exists in the global copper market this year and next, so the copper price will rise ."

The average price of copper in the last three months of LME is expected to be USD 7,165 per ton in the fourth quarter of this year, Morgan Stanley said.

LME copper soared to a three-week high on Tuesday (August 26) as the market was re-opened after holidays and showed signs that the European economy had a bright outlook under the new stimulus measures.

In terms of news, Chile lowered its expectation for copper prices this year to $3.05/LB, a decrease from the predicted $3.15/LB, as China's largest metal copper buyer slowed down in real estate growth.

For other non-ferrous metals, the U.S. Aluminum Company (lcoainc) said on Monday that it will always shut down the portovesme smelter in sarding Island, Italy.

The global supply and demand gap is expected to support copper prices