copper falls to 9,262.60 per tonne as of June 15, 2022
The outlook for copper prices on the international market is still not favorable despite the lifting of the barrier measures against the coronavirus in China and this situation is expected to continue in 2023 and 2024.
As of June 15, 2022, a tonne of copper is sold at USD 9,262.60 on the international market, particularly on the London Stock Exchange. And this, while exactly a week ago this metal was sold at 9,711.85 USD on the London Metal Exchange (LME).
Copper is beset by various risks that threaten to undermine the prospects of the key metal needed to wean the world off fossil fuels, according to industry experts, according to CRU Group’s Vanessa Davidson.
Threats include ” the possibility of a decline in GDP or industrial production triggered by geopolitical risks, high inflation becoming more entrenched in the economy, or the effects of Covid-19 lasting longer than expected ,” he said. CRU’s Director of Copper Research and Strategy said Monday at a mining conference in Toronto.
Other near-term risks include slower-than-expected adoption of green technologies, greater availability of scrap, and substitution and reduced use of industrial metal.
Copper fell 2.3% on the London Metals Exchange on Monday, the most in a month, as commodities fell alongside U.S. stocks on growing fears that interest rate hikes of the Federal Reserve will plunge the economy into a recession.
The red metal is down 4.4% this year after climbing more than 25% in each of the previous two years.
Moreover, according to the projections of the “tribune des coats” which quotes the RBC Capital Markets, the world supply of copper will exceed demand in the next two years, thanks to several large-scale mining projects.
The broker says it expects a price of 9,525 USD/tonne in 2022, then 8,270 USD/tonne in 2023 and 2024, against a background of ” slight ” surplus production.
Several large-scale projects, such as Like Quellaveco in Peru, Timok in Serbia and Quebrada Blanca Phase 2 in Chile, should begin production in mid-2022 and early 2023, which will help meet growing demand.
At the same time, Chile, which accounts for around 30% of global copper production, remains held back by quality and other technical issues.
