Copper prices may remain low

Reuters

London

Copper prices are expected to see their lowest average in more than a decade this year due to weak demand growth in top consumer China and a supply overhang, a Reuters survey of metal analysts showed.

But 2016 is also likely to see losses come to an end as cuts in mine supply help balance the market.

The survey of 32 metal analysts showed that the median forecast for prices of the metal used in power and construction at $4,858 a ton this year, the lowest since 2005 when the number was around $3,600 and the commodities "super-cycle" was in its ascendancy.

For 2017 the forecast shows an improvement to $5,182, but that is still below last year's $5,495.

China accounts for nearly half of global copper consumption estimated at 22 million tonnes. Chinese demand growth has slowed significantly since the heady days of the last decade, while supplies continued rising.