Global Copper market to see potential 79,000 tonne surplus and decade high prices in 2021.
Week commencing: 03/05/2021 Issue: 5
What does the Copper industry’s future hold?
Since the Copper price hit an ultimate high last week, there has been an increased speculation regarding the future for the Copper industry. It has been discussed that the 2020s are potentially expected to be the strongest phase of volume growth in global Copper demand in history. Traditionally, Copper has been seen as an indicator for economic growth due to its extensive use in industrial areas which could increase its importance as it becomes more essential for applications. Copper projects are becoming increasingly in demand as future plans become more relevant including electric vehicles and 5G. Copper has been noticed as an essential metal used in the electrical vehicle process, for example Tesla car production, a leading electrical vehicle seller and as 5G network becomes the next vital step in telecommunications technology it will require Copper cable resulting in advanced speed and larger capacity. Copper has also recently been acknowledged for its essential renewable energy properties and its 100% recyclability, supporting a global movement to a greener footprint and clean energy.
It has been suggested that the global Copper market could see a staggering surplus of 79,000 tonnes, averaging a 3.5% increase in 2021 and 109,000 tonnes, averaging a 3.7% increase in 2022. The sudden requirement for Copper has increased due to numerous factors such as China, who account for around half of the global Copper consumption, experiencing an increase in their construction sector. Whereas other reports suggest that short term the Copper price could remain at decade highs and that the Copper market is not prepared as it currently stands for this demand-based environment. It is also reported that there may be a correction during the second half of this year, estimating price declines for 2022, suggesting there is an uncertain stigma regarding the future for the Copper industry and prices.
How can ILF help you?
Whilst the Copper industry faces a substantial increase in the cost of production and a severe decrease in the availability of stock, ILF continue to provide customers with the best available supply of Copper, maintaining high inventory levels and meeting customers’ demands.
Have you considered how the current supply disruptions may affect your business? Or do you have an upcoming project you require a Copper supply for?
If you have been impacted or require your demands meeting, we would love to hear from you and find a solution to your challenges.