GS: Copper is about to hit a “supply wall”

GS: Copper is about to hit a “supply wall”

Metals are heading into a “supply wall”, which will lead to further price weakness over the next three, six and twelve months, that’s according to a report from Goldman Sachs.

The bank’s report is somewhat of a warning to commodity producers and investors. Indeed, the report highlights research pointing to the fact that may of the supply curtailments, which were announced towards the end of last year, are now in the process of being unwound. This trend is most notable in China, where producers across the steel, aluminium and zinc markets are bringing capacity back on line having seen a sharp increase in margins on the back of the credit-led rebound...