LONDON/ (Reuters) – Prices of copper and other industrial metals are expected to be capped next year as weak economic growth weighs on the market, a Reuters poll showed.
The London Metal Exchange index of six base metals has inched up only 1% so far this year, held back by worries about a possible global recession and a trade war between the United States and top metals consumer China.
But the average is deceptive, because sharp gains for nickel of over 50% cover the fact that half of the metals are in the red, with losses of up to 15%.
“Unfortunately, we expect that the macroeconomic environment will deteriorate further. We expect flat copper prices in 2020, but significant downside risks persist,” said analyst Daniela Corsini at Intesa Sanpaolo Bank in Milan.
The LME cash copper price is expected to average $6,050 a tonne in 2020, a median forecast of 29 analysts shows, a 3% increase from the price on the afternoon of Oct. 25.
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