• 56 days Could Crypto Overtake Traditional Investment?
  • 61 days Americans Still Quitting Jobs At Record Pace
  • 63 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 66 days Is The Dollar Too Strong?
  • 66 days Big Tech Disappoints Investors on Earnings Calls
  • 67 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 69 days China Is Quietly Trying To Distance Itself From Russia
  • 69 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 73 days Crypto Investors Won Big In 2021
  • 73 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 74 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 76 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 77 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 80 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 81 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 81 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 83 days Are NFTs About To Take Over Gaming?
  • 84 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 87 days What’s Causing Inflation In The United States?
  • 88 days Intel Joins Russian Exodus as Chip Shortage Digs In
Chinese Panic Buying Could Fuel A Copper Rally

Chinese Panic Buying Could Fuel A Copper Rally

Copper was once again approaching…

Tesla's

Tesla's "Battery Day" Could Deal A Blow To Cobalt Miners

Speculation points to a cobalt-free battery that…

The Deep-Sea Mining Debate

The Deep-Sea Mining Debate

Deep-sea minerals could meet the…

Mining.com

Mining.com

Mining.com

MINING.com is a web-based global mining publication focusing on news and commentary about mining and mineral exploration. The site is a one-stop-shop for mining industry…

Contact Author

  1. Home
  2. Commodities
  3. Industrial Metals

Copper Glut Continues To Grow

Copper Glut

A global copper surplus currently in the making is expected to get worse over the next 18 months as market disruptions have created greater uncertainty in the factors affecting supply and demand for the metal, a market’s insider report shows.

According to the International Wrought Copper Council (IWCC), which represents copper and copper alloy producers, supply is expected to surpass demand by 285,000 tonnes this year as a result of coronavirus-related disruptions. The figure would likely rise to 675,000 tonnes in 2021, the industry body said.

Unlike gold, considered a safe haven asset, copper remains largely ruled by laws of supply and demand.

With mines shutting down or curtailing operations and global economic growth projections being tossed aside amid the coronavirus pandemic, both supply and demand of the red metal continue to be severely affected.

On May 19, prices for the metal hit their lowest since January 2016, with three-month copper futures on the London Metal Exchange (LME) touching $4,371 per tonne. That’s down from a high of around $6,340 per tonne in mid-January.

Plot twist

“These are unprecedented times and the copper industry is not immune from the impact of the covid-19 pandemic,” the IWCC said.

The report confirms a plot twist for copper, which was supposed to thrive this year amid a projected supply deficit.

Demand for the metal, widely used in construction and increasingly in the electric vehicles (EVs) sector, is forecast to fall by 5.4% this year, the IWCC said. The industry body, however, believes demand could rebound by 4.4% in 2021.

Refined copper production this year is forecast to be 22.91 million tonnes against demand of 22.625 million tonnes. In 2021 output is seen climbing to 24.3 million tonnes, with demand at 23.625 million tonnes.

In China, the world’s largest consumer of the metal, refined copper demand will slide 2.8% to 11.87 million tonnes this year. In 2021, demand should rise by 2.6% to 12.175 million tonnes in 2021, according to the IWCC. Related: Conspiracy Theories Set Tone For 5G Cold War

In Europe, refined copper consumption is seen falling 6.4% in 2020 before climbing 5.4% to 2.927 million tonnes next year.

In North America, refined copper demand this year is expected to slip 6.9% to 2.223 million tonnes before registering a 5.3% upturn in 2021. 

IWCC based its estimates on publicly available information and input from the International Copper Study Group (ICSG), a global research and marketing body.

By Mining.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment