Tri-land Metals Forecasts LME Copper at US$ 6,800-7,000 in 2008

Tri-land Metals of United Kingdom, a ring member of London Metal Exchange, revised up its copper price forecast for 2008. The firm estimates LME copper 3-month future price at average US$ 6,800-7,000 per tonne in 2008, up by US$ 100 from the previous forecast. The forecast was revised up when LME copper price has maintained strong so far with many productive troubles in South America in 2007.

Tri-land Metals forecasted LME copper 3-month future price in 2008 becomes slightly lower than average US$ 7,150-7,250 per tonne in 2007. Global copper supply is expected to increase in 2008 with many output expansion plans by South American producers. However, Tri-land Metals analyzes copper market has not turned downtrend yet because some of output expansion plans seem exaggerated and expected output expansions have not been realized so far.

Copper demand is strong especially in Europe. World Bureau of Metal Statistics estimated European copper demand keeps flat in the first half of 2007. However, Tri-land Metals pointed out in its report WBMS’s forecast seemed less than actual demand level in the region.

As to US market, copper demand is expected to maintain weak due to the impact of a sub prime loan problem on US construction market. Chinese copper demand is estimated to keep basically strong even though Chinese copper import volume expanded during January-July 2007.