WASHINGTON Copper demand wont be strong enough to take the additional supply coming to the market, INTL FCStone Inc. senior analyst Edward Meir told delegates at the American Copper Council meeting in Washington April 25.
Chinese imports are falling, while supply growth is showing no sign of slowing, he said.
There is an estimated 800,000 to 1 million tonnes of copper off warrant in China, Meir said.
This is in addition to stocks in London Metal Exchange-approved warehouses of around 617,000 tonnes and Shanghai stocks of more than 220,000 tonnes, he noted.
High treatment charges are indicative of a lack of supply-side issues, he said, with production in Chile, the worlds largest copper-producing nation, increasing and Chinese domestic output also rising.
Meir also pointed to new copper production coming to the market, including at Rio Tintos Oyu Tolgoi Mine in Mongolia. He forecast an average copper price of $7,350 per tonne in 2013.