Copper price dip is no cause for concern, Copper 360 assures shareholders
AltX-listed mining company Copper 360 has assured its shareholders that the dip in the copper price to about $8 300/t early in August is nothing to worry about, despite it marking a 15% drop from the price of $9 037/t in January.
CE Jan Nelson believes the copper market fundamentals remain strong and that the price for the red metal will unlikely drop below $8 000/t for the year.
He explains that the copper price is still well above historical lows, notably the $2 000/t price experienced in the previous down dip in the cycle.
The lowest copper price in recent years was experienced in April 2020, when copper fell to $5 057/t.
The latest price dip has been influenced by the banking crisis and concomitant infrastructure development slowing down in the US, dampened economic growth in China as a result of Covid-19 lockdowns, as well as economic scares in Europe owing to the Ukraine war.
However, copper will continue decoupling from traditional indicators as the green economy gains momentum and demand for the commodity intensifies with more renewable energy builds.
Goldman Sachs predicts the copper price to reach $11 000/y by year-end, while more bearish stakeholders believe copper will average above $8 000/y.
Nelson concludes that the copper price will remain high, given a decline in Zambian copper production of 10% recently, as well as the International Copper Study Group forecasting a copper supply shortfall of 114 000 t that will only level out next year.
It also helps that China’s use of refined copper will double from a forecasted growth of 1.2% in 2023 to 2.6% in 2024.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation