The American investment bank “RBC Capital Markets” expects a surplus of copper on the market in 2023 and 2024
Analysts at the US investment bank RBC Capital Markets believe in a research note that there will be a “slight” surplus in the copper market in 2023 and 2024. These experts justify this situation by a significant increase global supply combined with a slowdown in demand.
According to the details relayed by the Reuters agency quoted by the Ecofin Agency, new mines should indeed come into production in the coming months, particularly in Peru with Quellaveco and in Serbia with Timok. An influx of copper on the market, which would contrast with the weakness of Chinese demand, the first consumer of the red metal.
In China, the resurgence of coronavirus contaminations has led to new blockages in recent weeks, raising fears of an economic recession. While the Chinese government’s stimulus measures should help improve the situation, RBC believes that they are “unlikely to have the same impact as in 2020.
It is on the basis of all these parameters that the American investment bank expects a copper price of $3.75 per pound (approximately $8,200 per ton) over the next two years, as the red metal hovers around $4.32 a pound spot (about $9,500 a tonne) on June 1.
Namely that in Africa, the DRC is one of the countries that will contribute to the increase in world production with the giant mining complex of Kamoa-Kakula in the province of Lualaba. The drop in price next year should not have a major impact on the development of this project as well as others led by Zambia, Africa’s second largest producer, since the long-term prospects remain excellent thanks to the energy transition in particular.
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