Copper price surges to 10 year highs on supply and demand concern.
Week commencing: 26/04/2021 Issue: 4
What has happened to the Copper price?
On Monday 26th April, Copper prices climbed to decade highs. The latest supply concerns reportedly came after Chilean port workers called for strike action due to changes in pension schemes for workers. This in turn had a major knock on effect as Chile accounts for approximately a quarter of the worlds Copper supply. Furthermore, it has been discussed that Copper will be the key raw material in the Joe Biden infrastructure plans and for a global transition to sustainable energy explaining the surge in Copper price. Another factor having a significant impact is that the inventories of Copper in the London Metal Exchange (LME) registered warehouses have fallen and it is suggested that it will decline further. Lastly China, who account for around half of the global Copper consumption, have experienced an increase in demand due to increased activity in their construction sector.
With Strike action potentially looming and Chile already reeling from their recent border closure this new development poses a significant risk to an already bullish Copper market which may result in further increase to the LME. Monday experienced record breaking price highs, as the LME price closed at $9,758.00, increasing approximately 18% since the start of 2021 and is potentially set to continue to rise in line with global forecasts.
How can ILF help you?
Whilst the Copper industry faces a vast increase in the cost of production and a sharp decrease in the availability of stock, ILF continue to provide customers with the best available supply of Copper, meeting customers demands and maintaining high inventory levels. ILF has some exciting projects lined up for 2021 which we believe will assist our client base with faster deliveries and a wider range of stock.
Have you considered how the current supply disruptions may affect your business? If you have been impacted, we would love to hear from you and find a solution to your challenges.