Copper Futures Rise Ahead of Report

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Nov. 29 (Bloomberg) -- On today's "Futures In Focus," Independent Copper Trader Eric Zuccarelli discusses he price of copper on Bloomberg Television's "In The Loop." (Source: Bloomberg)


At one point, we were almost trading five dollars and copper.

A stark difference to the retailer $.25 price we see now.

What you are looking at right now, you see perhaps a big change going into 2014. the ramp up of production across major production places, whether it is mongolia, the far east, papua new guinea, the largest producer chili, they are all increasing production significantly.

We could see a 10% to 15% production increase for next year.

Let's talk about the warehouse surplus that we have seen throughout different regions.

How does that play into this equation?

At one point during the lme crisis, the story was much more aluminum.

It did affect the copper queue.

There were some tweaks to that formula and copper has been freely coming out of the exchange since the end of august.

At one time, we had 650,000 tons, we're down to 425,000 tons.

With another canceled a equation of 250,000 tons.

Let me jump in.

Another sweet in the -- in other tweak -- that is raw material and concentrate as they call it.

That has to get refined at various smelters across china and japan.

Those do not have the capacity to find that increased raw material.

Once those come back online, china has some new capacity coming online that finished product will be hitting the markets.

Let's talk about the resurgence in china demand.

They are the biggest consumer of copper.

Even the resurgence in the u.s. demands that it will take a wild to work off some of that surplus.

-- a while to work off some of that surplus.

This could go until about chinese new year in which their big are choosing time comes.

There's also room are about the chinese coming back to the market the beginning of the new year to restock.

It seems to be a lot of material on the ground in china and once this bottleneck is resolved, new material coming on, even with increased the man out of china, it will leave the market in for 14. , we are talking about volatility short-term at your bullish going forward.

We are on the market again in 30

This text has been automatically generated. It may not be 100% accurate.


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