Copper Seen Dropping as Stockpiles Increase, Aluminum May Climb

Copper is poised to decline 2 percent this year as supply outpaces demand and boosts stockpiles, while aluminum may advance as demand gains, said Australia’s Bureau of Resources and Energy Economics.

Copper may average $7,788 a metric ton in 2013 from $7,948 a year earlier, the Canberra-based bureau said in a report today. The bureau in December forecast $7,675 for this year. World inventories may surge 16 percent to 1.3 million tons in 2013, or three weeks of consumption, it said. That compares with a December forecast of 1.1 million tons.