- Copper may be getting killed but here is Some Big news that was just released that could lead to a price rebound quicker than you think.
- The International Copper Study Group forecasts a supply deficit of 114,000 tonnes in the global copper market for 2023.
- So This means that they think that there’s not going to be enough copper to make all the things that people want in 2023, for example, pipes, wires, and electronics.
- Keep in mind though, This comes after a 431,000-tonne deficit in 2022.
- BUT, previous forecasts predicted this shift to be a surplus of 155,000 tonnes this year, so the DEFICIT of 114,000 would be a surprise.
- This shortfall would be due in part to better-than-expected usage of copper in China, with forecast growth of 1.2% this year and 2.6% in 2024.
- real demand growth is estimated to be between 2.5% and 2.9% for both years as well, so this suggests a steady increase in demand for copper, which is another positive sign for its price
- Citi Bank however is more on the bearish side of things and they think it’s very unlikely that there will be a shortage of copper in 2023.
- It cited weak global demand, high finished goods inventories, and improving supply, and has downgraded its price forecast for the next three months from $8,500 to $8,000 per tonne.
- So conflicting news everywhere but we are thinking overall good news in the long run for copper, so hold for now!
Scrap Metal Price Update
Copper prices are on the move, and Sahd Metal Recycling has updated all of its prices here: https://recycleyourmetal.com/home-2/. Because we believe in operating with integrity
