A Deutsche Bank report predicts the price of copper futures will gain 17 percent this year since economic circumstances will resume a modicum of normalcy this year and prompt purchases by Europe and China, according to Dow Jones Newswires.
China, the globe's top consumer of the reddish metal and host of the world's most rapidly developing economic system, is expected to increase its demand and Europe is likely to see its economic situation change for the better. Those factors will drive copper futures to $8,600 per metric ton, according to the German bank, which also made reference to the reddish metal's climb in value earlier this year.
"On this basis we expect that the strong performance evinced at the beginning of the year could continue into the second quarter as the physical market effectively catches up with the financial market," the bank said.
In 2011, copper production dwarfed demand by at least 69,000 metric tons, according to Bloomberg, which gleaned its information from the World Bureau of Metal Statistics. A shortage by 175,000 metric tons occurred in 2010, the WBMS stated.
Economic developments typically drive up or down the price of copper given the industrial metal's uses in construction and manufacturing.
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