Morgan Stanley (NYSE:MS) Sees Base Metals Surge Led by Copper

Morgan Stanley (NYSE:MS) sees base metals rallying in 2011, led by copper.

Expectations are consumption will increase at a time when supply is lower and demand rising.

Peter Richardson, chief metals economist at Morgan Stanley Australia Ltd., said, "There is a fundamental aspect to this rally in addition to what's happening to the U.S. dollar. I rank copper first."

According to the International Copper Study Group, refined-copper production in 2011 will fall behind demand, the first such occurrence since 2007.

With potential shortages not priced fully into copper at this time and the move by Ben Bernanke and the Federal Reserve to implement another round of inflating, or quantitative easing, copper and other base metals will continue to rise, again, led by copper.