The world’s biggest copper producers are warning of looming supply limits at the same time that growing concerns about the global economy leave investors with the largest losses in nine years.
Billionaire Oleg Deripaska’s forecast for a potential aluminum shortage and record global car output predicted by Carlos Ghosn mean the world’s second most- used metal may be about to rebound.
Aluminum prices will rebound in the next year as supplies tighten and investor demand increases, according to analysts from Citigroup Inc., Morgan Stanley and Societe Generale SA.
Copper rose for the sixth straight session as a weaker dollar lifted demand for commodities.
Commodity prices jumped to the highest level in a month amid signs that the improving economy will boost demand for energy, metals and crops.
Copper prices dropped to the lowest level in 14 weeks on mounting signs the global economic recovery is fading.
Speculators are buying gold faster than the world’s biggest producers can mine it as analysts forecast a 27 percent rally that may extend the longest run of annual gains since at least 1920.
"Copper supplies have started to decline again."
- Andrew Karsh on Jul 06, 2010