PRESS ROOM
Copper prices buoyant again amid a favourable outlook
Friday 30th July '21
International Copper Study Group data indicates that copper markets were in a surplus of close to 70,000 tonnes in the January to April 2021 period. While that is a lower surplus than the corresponding period last year, if that trend continues, we could see copper markets in a surplus for the full year 2021 in contrast to the sharp deficits that we saw for the full year 2020. However, we believe that with a growing number of infrastructure projects being sanctioned boosting demand for copper and some of the big mining countries, like Chile, facing supply hurdles, the market will tighten to a deficit. The Chilean government’s proposal to introduce royalty tax on copper miners will likely discourage mine expansion.
Source: WisdomTree, Bloomberg. Data as of 28/07/2021.