BDI 0.00% 0.1¢ blina minerals nl

Hello my fellow BDI followers, lately I've been investigating...

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    Hello my fellow BDI followers, lately I've been investigating LME metals and researching short term and future price forecasts. What I have come across are positive future forecasts for copper, with copper prices expected to rise in 2019. But firstly, If we look at copper prices in 2018, copper fell as much as 17% in June. From what Iv read, the rising tension between USA and China at that particular time, invoked immense fear with the demand of metals, such as copper, predicted to be damaged from global trade wars such as USA increasing the tariffs on Chinese imports (and also the softening of the Chinese economy). Graph taken from the London Metal Exchange, Copper metal, for 'Cash buyer' contract type. https://hotcopper.com.au/data/attachments/1350/1350700-95138c46d736c1d889b4d1339a9aaef5.jpg
    However, current predictions have sprouted in favour of copper prices to rise in 2019. Firstly I came across this article from Thomson Reuter, published on the 26th of October 2018. Link - https://www.reuters.com/article/us-metals-base-poll/copper-price-to-spring-back-in-2019-zinc-seen-flat-reuters-poll-idUSKCN1N01MR. Key take aways from this article:


     - "Copper prices are due to rebound next year as healthy supply/demand fundamentals overcome macro-economic worries"
     - "The LME cash copper price in 2019 is seen averaging $6,699 a tonne, according to the median forecast of 30 analysts" ( price at 7/11/2018 was $6208/t, thus an approx. 8% increase)
     - "Currently too much non-fundamental, macro noise is keeping the copper price low, but as soon as trade war jitters fade and more encouraging Chinese macro numbers are presented, fundamental drivers will take over"
     - "While analysts still expect shortages next year, they have cut their consensus forecast of a global deficit to 44,000 tonnes from 151,000 tonnes in the July poll...They have also penciled in a surplus of 13,500 tonnes this year, down from their previous estimate of a shortfall of 129,000 tonnes, after a strike failed to materialize at top mine Escondida"


    IF copper predictions are some what accurate and we do see the price rise alongside a supply deficit next year, What COULD this mean for BDI IF they successfully acquire a copper project in Africa ?? 

    ALWAYS remember to DYOR !!!!! Do not take this as fact, I could be completely wrong !!! But please comment on any mistakes presented and provide your opinions on the future of Copper and even the impact of the trade wars !!

    Last edited by Delcos66: 09/11/18
 
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