Copper support level fears rekindled
Dec 09, 2008 | 12:00 PM
| Anne Riley
Copper prices teeter around the $3,100-a-tonne mark, about the marginal cost of production for some smelters, according to Barclays Capital Plc, London, renewing concerns among industry players that slumping prices might plow right through formerly reliable pricing supports.
"Marginal costs in this kind of environment aren't offering much in terms of support. I think you probably will see prices break down to $3,000 a tonne," Barclays analyst Gayle Berry said Tuesday, calling that point "an important psychological number for the market."
Although a handful of copper projects have already been taken off-stream this fall as metal prices have lost more than half their value compared with summer highs, analysts said a slew of additional cutbacks are still in store if prices don't hold at the marginal output cost.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.