Copper prices to hit record high in next 12 months, China's Maike says
Copper prices will surge to an all-time high over the next 12 months as a result of strong demand from China's clean energy drive and years of under-investment in global mine supply, the chairman of Chinese metals trader Maike Group said on Wednesday.
Benchmark prices for copper, widely used in power and construction, hit a nine-and-a-half year high of $9 617/t on the London Metal Exchange on February 25, within striking distance of the all-time peak of $10 190 set in 2011, partly driven by optimism over coronavirus-related fiscal stimulus.
The metal has since eased to around $8 900 but He Jinbi, who founded Maike in the 1990s, believes as top consumer China builds metals-intensive renewable energy and electric vehicle infrastructure, copper and other base metals will see serious supply deficits in future and be subject to capital inflows.
"The price of copper will hit a record high in the coming year," He, a delegate at the National People's Congress (NPC) in Beijing, said in a written response to Reuters questions.
"The market will gradually accept it, because with the recovery of the global consumption market there will also be a shortage of copper in the European and American markets," he explained, adding that global investment in mineral resources "has been seriously inadequate in the past five years."
The Maike boss is submitting a proposal at this year's NPC meeting calling for better coordination on a strategic metals reserve in China.
"Don't focus on market prices too much. When to stockpile, what to stockpile and how to stockpile - these are questions the relevant national departments should think about," he said.
Hundreds of proposals are typically submitted at the annual gathering, although most are suggestions by individual delegates and are not discussed in parliament.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Rooted in the hearts of South Africans, combining technology and a quest for perfection to bring you a battery of peerless standing. Willard...
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
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
