A significant jump in copper prices is only possible in 2019 - CRU

A recent study published by CRU Group predicts a further decline in the price of copper over the next 18 to 24 months. Prices are likely to recover only in 2019, when appetites outweigh the supply of the metal.

According to the report, the decline in copper prices has not yet bottomed out. In the short term, copper will continue its downtrend. Prices on the London Metal Exchange are likely to average around $ 6,750 per tonne in 2015 and are likely to reach $ 6,300 - $ 6,400 per tonne in 2016.

Weakening demand from China will drag down metal prices. Business analysts predict modest demand pickups in the North American region in 2015-2016, however, this is not enough to counter the slowdown in China. As transaction funding falls, copper imports in this country will decline during the first six months of 2015. In addition, the country's construction industry is expected to slow growth in 2015.

At the same time, supplies from copper mines are expected to increase by 5.7 percent during 2015. Supply growth is expected to subside by 2017, when some fields are depleted. In addition, many projects will not be completed by then due to the lack of fresh investment at the present time. The market is likely to shift to a supply shortage of around 400,000 tonnes by 2019, and then copper prices could skyrocket to $ 8,000 - $ 9,000 per tonne.