Expect the price of copper to fall

Falling demand and an increase in supply could see the price of copper fall by a quarter by the end of the year.

Copper prices have moved in a range between $8,000 and $8,800 a tonne since February, following a rally in December and January.

Jitters over Europe have been offset by concern over supply: "the bigger copper miners are struggling to increase their capacity", says Andrew McLeod of Lime Street Capital. Moreover, many analysts are expecting the economy in China, the biggest consumer of copper, to pick up in the second half of the year. But the market "appears complacent", argues Capital Economics.

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