This is the conclusion reached by the Financial Times. By the end of the year, copper prices had grown by 2.5% and now cost $8.6 thousand per ton. The rise in price began due to the improvement of the Chinese economy and a decrease in production in Latin American countries.
Due to a decrease in production at a mine in Panama and production restrictions by Anglo American, the global volume of copper will fall by 750 thousand tons, or 3%, by 2024. Global mining concerns Vale and Rio Tinto also predict reduced metal production in 2024.
According to preliminary calculations, copper supplies from Africa, Peru and Chile should have significantly exceeded demand, but now it has become clear that the market will be balanced.
Goldman Sachs in its forecasts speaks of an increase in copper prices to $10 thousand per ton over the next year. The increase in price is also due to high interest rates from the US Reserve System. The dollar exchange rate rose by 3%, which significantly increased the cost of raw materials for importers. Against this background, many suppliers reduced their stocks.
In addition to copper, aluminum, zinc and lead became significantly more expensive. The cost of nickel fell by 45%, to $16.75 thousand per ton.