Copper surpluses are being slashed as manufacturers of the industrial metal are working on increased demand while mines age and labor strikes manifest, Bloomberg reports.
Twenty-two analysts polled by the news service estimate the world surplus will amount to a median of 18,500 metric tons, which is 85 percent lower than forecasts from this past January. That projection amounted to 124,000 tons of the reddish metal.
"It's really a matter of scarcity in copper, with mined supply lagging behind expectations," metals analyst Thomas Benedix with Tiberius Group of Germany told the news source. "At the start of the year people were expecting that the supply side could really start delivering on their targets, and now it’s not going to happen."
At 9:48 a.m. on Wednesday, copper futures gained 0.1 percent, a 0.0035 cent lift to $3.459 per pound.
Reuters reports the reddish metal on Wednesday encountered a modicum of stability after its performance on Tuesday included sharp losses after U.S. Federal Reserve chair Ben Bernanke said no additional intervention is imminent to spur the economy of the U.S. The nation is the globe's second-largest consumer of copper.
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