Goldman Sachs bullish on copper with 12-month PT of $11,500/t

Copper Mountain Mining

27/07/2021 06:51

** Goldman Sachs says copper prices are poised to grow as
demand outpaces supply since the concentrate market is very
tight, particularly in China
    ** Demand expected to remain buoyed by increasing
investments into green energy sectors, with regulations such as
European Union's adoption of EV policy supporting the market
    ** This reaffirms our projected deficits for 2021 of 276,000
tonne and 200,000 tonne next year - GS
    ** GS says its three-month, six-month and 12-month price
target for copper is $10,500/t, $11,000/t and $11,500/t,
respectively
    ** Three-month copper on the London Metal Exchange  CMCU3 
trades at $9,924 a tonne on the day
    ** GS expect negligible downside to copper demand from the
Delta variant lockdown risk, as household end-demand for
metals-containing goods gets reinforced during such periods
    ** China's interventions into commodity markets by releasing
stocks to cool prices seems to have run its course, GS adds
    ** Given China's healthy appetite and seasonal demand uplift
into year-end, "the broader fundamental trends will make it
challenging for Beijing to generate a continued perception of
price influence"

 (Reporting by Anushka Trivedi in Bengaluru)
 ((Anushka.Trivedi@thomsonreuters.com; +918061823241;))