Commodity Copper Price Forecast Drops on Rising Dollar, Falling Oil

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Copper prices will fall next year as a strengthening U.S. dollar and weaker oil prices push down marginal production costs, according to Goldman Sachs Group

Source: www.hellenicshippingnews.com

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Copper for delivery in three months on the London Metal Exchange fell 0.3 percent to $6,682 a ton at 12:44 p.m. in Shanghai. Prices are down 9.2 percent this year and headed for a second annual decline.

The bank said prices could fall below its estimates to average $5,600 a ton if China’s state stockpiling agency stops buying copper. The State Reserve Bureau will buy 500,000 tons of refined copper this year and 200,000 tons in 2015, supporting prices at around $6,200 to $6,300 a ton, according to the bank

The U.S. dollar’s rise will reduce marginal costs of copper mine production as 83 percent of operating costs are in local producing-country currencies, the bank said in the report. The Bloomberg…

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