Copper Prices Projected to Rise as DRC and Zambia Prepare for Increased Production
Copper prices are anticipated to average around US$10,265 per tonne in the final quarter of 2024, according to estimates from Fastmarkets.
Analysts at Reuters, a commodity price intelligence firm, suggest that positive economic outlooks in the United States and China will contribute to upward pressure on copper prices.
Goldman Sachs has also predicted a gradual increase in copper prices in the coming months. The American bank projects that the price of copper will reach US$10,100 per tonne by 2025.
This price rise is expected to enhance the revenues of copper producers by the end of 2024, benefiting both companies and countries involved in copper production.
The Democratic Republic of Congo (DRC), the world’s second-largest copper producer and Africa’s leading producer, is set to benefit significantly from these forecasts.
The DRC is projected to see a 4.5% increase in copper production in 2024, according to BMI. This uptick is expected to result in higher mining royalties for the Congolese government and increased export revenues.
The Central Bank of Congo estimates that the value of copper exports will reach $23.2 billion in 2023, accounting for 78.4% of the DRC’s total exports.
Similarly, copper plays a crucial role in Zambia’s mining sector and export revenues. Zambian mines produced approximately 700,000 tonnes of copper in 2023, with production expected to rise to around 800,000 tonnes in 2024, as reported by the Zambia Institute for Policy Analysis and Research.
In the medium to long term, both the DRC and Zambia have ambitious plans to boost their production. Zambia aims for an annual production target of 3 million tonnes of copper by 2031, while the DRC is expected to produce 3 million tonnes in 2024 or 2025, driven by the ramp-up of its largest mine, Kamoa-Kakula.
With these developments, the DRC and Zambia are well-positioned to capitalize on the anticipated increase in global copper demand in the coming years.
