SYDNEY, Jan 9 (Reuters) – London copper rose slightly on Monday, hovering below a two-week high hit last week, after a solid U.S. jobs report lifted the dollar, making commodities more expensive for holders of other currencies.
Market activity was subdued as many Western traders were still away on holiday.
Broker Jefferies hiked copper price forecast for 2017 to 2.75 per pound from 2.38 per pound, a surge of more than 15 percent, as it now sees a deficit for this year due to less spending by miners.
“Copper is our preferred commodity for 2017… We now forecast a small (82,000 tonne) copper market deficit this year due to lower supply projections,” it said in a report.
“Copper mining companies slashed capex, and in some cases, high-graded mines during the downturn. Operating risk has increased as a result, and unexpected disruptions are likely to be a prominent factor in the copper market this year.”
Three-month copper on the London Metal Exchange CMCU3 was up 0.4 percent at $5,614.50 a tonne by 0730 GMT, after closing little changed from the previous session. Prices hit the highest in more than two weeks at $5,698 a tonne last Thursday.
Sourced from Thomas Reuters / Broker Jefferies