Copper could catch up in 1H17 - BAML

Analysts at Bank of America Merrill Lynch suggests that after having been the laggard in the base metals complex through 2016, BAML believes copper could catch up in 1H17.

Key Quotes

“This is driven partially by supply, which is set to rise by a muted 1.3% YoY in 2017. Meanwhile, demand should expand by 2.6% YoY on fiscal stimulus in several countries in the World ex-China. For China, the drivers of demand growth will likely change, but the government may not engineer a slowdown ahead of the National Congress in November 2017, although we are somewhat more cautious on copper around and after that event.”