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Copper supply seen outstripping demand in 2021, 2022

21st May 2021

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Following a significant copper shortfall last year that drove a price rally, the International Copper Study Group (ICSG) is saying that copper supply will outstrip demand this year and next year.

The ICSG is forecasting market surpluses of 80 000 t and 110 000 t for 2021 and 2022 respectively. This is after a sharp increase in Chinese apparent refined copper consumption pushed the market to a deficit of 600 000 t in 2020.

The group notes that world copper mine production, adjusted for historical disruption factors, is expected to increase by 3.5% in 2021 and 3.7% in 2022 as output recovers from 2020 Covid-19 constraints and as new projects enter production.

Some of the major copper mines starting in 2021 and 2022 include Kamoa-Kakula in the Democratic Republic, Quellaveco in Peru, Spence-SGO and Quebrada Blanca QB in Chile, and Udokan in Russia.

Refined copper production is forecast to rise by 3% in 2021 and 2022.

Apparent refined copper consumption is expected to remain unchanged in 2021 and to grow by 3% in 2022.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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