Copper prices have now almost halved from July's record highs. They are now approaching levels that put marginal producers at risk of closure. Overall, it appears that the market is pricing a worst case scenario in to copper at the moment, but we are yet to be convinced that the worst case is the most likely scenario. We believe a wave of significant production cuts will offset demand weakness, we think internal Chinese demand will remain robust, and we expect China's SRB and consumers to emerge as keen buyers next year. Ail this should offer decent support for copper prices. Nevertheless, we have been forced to revise down our price forecasts this month for the remainder of 2008 and for 2009, though 2010 remains unchanged.
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