Copper Seen As ‘Not Too Hot And Not Too Cold’ In 2014

Summary: The outlook for copper in 2014 is being described as a “Goldilocks scenario” by base-metal analysts in light of mixed market news—not too hot or too cold. Production is expected to increase modestly, and demand is forecasted to hold up or increase slightly due to Chinese buying, but not to be spectacular. Bank of America Merrill Lynch reportedly indicated that its copper outlook for the coming year was “neutral,” and Brian Hicks, co-manager of US Global Investors’ Global Resource Fund (PSPFX), thinks the metal could spend much of the year hovering around $3.20 to $3.30 a pound. Three-month copper closed on the London Metals Exchange on Dec. 16 at $7,290 per metric ton, and the most actively-traded March futures finished at $3.3295 per pound on the Comex division of the NYME. Prices could be more volatile later in the 2014 as supply keeps coming down the line, says Hicks. Read more…