DB ups 2009 metals targets as copper declines

Copper prices were lower Friday on declines in demand as the US dollar strengthened and equities markets saw declines.

May copper was down 2 cents to $1.84 per pound in New York, while three-month copper was down $52.25 to $4,032.75 per tonne on the London Metal Exchange.

Despite today’s price declines, Deutsche Bank (FWB: DBK; NYSE: DB) raised its price targets on most base metals for this year on the assumption that the economy will begin to recover this year.

However, the German bank cut its forecasts for prices on most metals for next year and 2011, including an 11 percent drop from previous estimates for copper in 2010 while its estimates for copper in 2011 dropped by 8.7 percent.

The bank expects copper to average $3,288 per tonne this year while it now expects nickel to average $9,689 per tonne, up 20 percent from earlier forecats.

Deutsche Bank raised its estimate on zinc prices for this year to $1,155 per tonne and said it believes lead will average $1,070 per tonne this year.

Precious metals prices also dropped on the session in New York as June gold fell $16.90 to $925.30 per troy ounce while May silver was down 36 cents to $13.26 per troy ounce and July platinum dropped $17.30 to $1,137.70 per troy ounce.