LME Cu to Keep US$4,000-5,200/t, Mitsubishi Corp.

Mitsubishi Corporation Futures & Securities expects copper 3 months futures price is US$ 4,000-5,200 per tonne at London Metal Exchange in November. The firm warns aluminium price could decreases to less than US$ 2,000 per tonne.

LME copper price dropped by 40% in October when hedge funds settled the position even with loss under worldwide financial crisis. Mitsubishi Corporation Futures & Securities sees the funds already closed almost all the positions while the copper price could be still risk for another volatile move with potential financial confusion and negative factors in emerging markets.

The firm expects LME copper price couldn’t increase significantly from current level due to slower demand and industry activity worldwide. The firm expects the short supply of ore could support the price after the financial crisis confusion.

The firm expects LME aluminium price couldn’t recover US$ 2,500 per tonne in short term while Chinese and some smelters could make loss under the current price level. The firm expects current slower economy could impacts aluminium demand in automobile and housing in Europe and USA while the industrial activity is still normal in Southeast Asia.