Demand has not been the only factor driving up prices. While the pandemic did little to interrupt demand for copper via manufactured goods and housing, it did disrupt mining supply. Many mines in Chile, which accounts for 28% of global copper supply, closed for at least part of 2020 as a result of COVID-19.
Why is the copper market in deficit? Copper supply faces struggle to keep up with growing demand A deficit in the copper market is set to deepen over the next several years as supply of the widely used metal struggles to keep up with strong demand from the power and construction sectors, compounded by the proliferation of electric vehicles.
What happened to copper production in the second quarter of 2020? This led to a 3.7% dip in copper production globally during the second quarter of 2020. For the year, copper production fell by approximately 1.5% from 2019. Just as demand for copper-intensive manufactured goods and housing was picking up, copper supply was contracting.
Why did copper have its best year since 2017? Rising more than 22% in 2020, copper had its best year since 2017, with prices boosted by hopes for “green” stimulus (the red metal is an important component of electric vehicles and renewable energy systems.
Will copper surge to an all-time high next 12 months? Reuters quotes the chairman of Chinese metals trader Maike Group, saying that copper will surge to an all-time high over the next 12 months, as a result of strong demand from China’s clean energy drive and years of under-investment in global mine supply.
Why is the copper market in deficit?
Will the copper market see a historic deficit in 2035? According to the report, the copper market in 2035 could see a deficit of up to about 1.5 million mt in the high-ambition supply scenario and up to a 9.9 million mt deficit in the rocky-road supply scenario. Either could lead to a historic copper deficit.
What will the copper market look like in 2022? “Although we forecast that mine production will grow in 2022, the increase of refined metal output will not be sufficient to match the demand, in our view,” the company noted in a report. “In our opinion, the copper market will remain generally balanced in the near term, running a deficit of less than 1% of the global consumption (or 82 kt).”
What is the biggest copper deficit ever recorded? The largest recorded copper deficit currently stands at just below 1 million mt in 2014, according to John Mothersole, director of nonferrous metals economics & country risk for Market Intelligence.
What did the ICSG say about refined copper in June? Aug 23 (Reuters) – The global refined copper market showed a 66,000 tonne deficit in June, compared with a 30,000 tonne deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.