- 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!
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