Copper prices edged higher on Thursday, as the metals market saw an extended inflow of money through investment funds, while a forecast of potential deficit in the refined copper market this year also lent support.
Three-month copper on the London Metal Exchange (LME) was up 0.2 percent at $9,795.50 per metric ton, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.7 percent to 79,210 yuan ($10,932.15) a ton.
“Fund buying was still relentless during the US session … and after a slightly weaker opening, Asian funds seem to be follow through too on this wave of buying,” said a trader.
A slightly weaker dollar index helped make greenback-priced metals cheaper to holders of other currencies.
Analysts in Goldman Sachs forecast the global refined copper market is likely to see a deficit of 428,000 tons in 2024 and expect copper prices in London to hit $12,000 a ton within the next 12 months.
In China, the Yangshan premium assessed by SMM has dropped to zero for the first time on record, indicating weak appetite to import copper into China, following a surge in prices.
