Commodities Which Will Outperform In 2013


Copper:

In 2012, refined copper faced a deficit of 522,000-tonne in the global market from January to August, according to the International Copper Study Group (ICSG), as against a deficit of 77,000 tonnes in the same period of 2011. The world refined copper production was 13.14 million tonnes in the first eight months of the year compared with the demand for 13.66 million tonnes, ICSG said.

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China consumes nearly 41 per cent global copper production. Jayant Manglik, president, retail distribution, Religare Broking, says, "China's demand for copper, which has been growing at 15 per cent a year since 2000, is likely to slow to 6.6 per cent in 2012 and then pick up at the start of the next year."

Copper price rose by 10 per cent between January 2 and December 6, 2012. Sumit Mukerjee, research analyst, Karvy Comtrade, says, "The demand may continue to outpace supply, widening the deficit to nearly 300,000 mt in the first six months of 2013. The price of copper on the Multi Commodity Exchange is likely to stay in Rs 380-520 range in 2013."

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