Base Metals Outlook to 2010: Prices to Ease over the Medium Term

With copper consumption growth expected to be lower in China and the United States and production growth expected to increase strongly, world copper prices are forecast to fall in 2005. With China's aluminium smelting capacity growth expected to slow significantly toward the end of the projection period and consumption to grow strongly, China is expected to become a significant net importer of aluminium. Committed and proposed expansions in Australia's alumina capacity over the medium term will underpin significant growth in alumina exports to 2010. World zinc prices are expected to remain strong in 2005 as stocks continue to fall. But as supply increases, prices are expected to decline over the medium term.