BMO’s Melek says supply constraints already evident in copper

BMO CAPITAL MARKETS GLOBAL METALS & MINING CONFERENCE

BMO's Melek says supply constraints already evident in copper

BMO's global commodity analyst Bart Melek has a "quite robust view of the commodity market" and anticipates a "robust restocking cycle" in metals.

Author: Dorothy Kosich
Posted:  Tuesday , 02 Mar 2010

RENO, NV - 

BMO Capital Markets global commodity analyst Bart Melek said Monday the impact of the Chilean earthquake will be "not all that great" in terms of global copper supplies.

Instead, Melek suggested a production decline of Chilean copper could halve copper surplus and make markets tighter.

During a conference call with journalists at the BMO Capital Markets Global Metals & Mining Conference, Melek forecast supply constraints in copper, iron ore, platinum, silver and metallurgical coal.

Melek predicted a less than 50,000 tonnes of copper production decline for the year because of the massive 8.8 earthquake that hit central Chile. He noted that supply constraints already exist in copper, and forecast a copper deficit of 200,000 tonnes in 2011.

BMO's Melek says supply constraints already evident in copper