RBC: Global Copper Supply to Outpace Demand

SEATTLE (Scrap Monster): RBC Capital Markets expects global copper supply to outpace demand over the next two years, thus resulting in a surplus market. The projected surplus supply is mainly on account of several upcoming large mine projects around the world.

The copper prices are expected to average at around $4.32 per pond during the current year. The prices are likely to fall to $3.75 per pound in 2023 and 2024, owing to marginal surplus in market, the brokerage firm noted.

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RBC Capital Markets foresees several mammoth copper mining projects such as Quellaveco in Peru, Timok in Serbia and Quebrada Blanca Phase 2 in Chile begin production in mid-2022 or latest by early-2023, thereby helping the industry meet the normalizing demand growth.

The intermittent lockdowns in China, U.S. rate hike bets and poor economic growth from major economies have dented the demand for the industrial metal. The slowing demand and boosted supply could lead to a balanced market in 2023. Furthermore, RBC maintains a positive medium-term outlook on the metal.

Incidentally, copper prices have dipped by more than 13% from the peaks recorded in March this year. It had recently recorded five consecutive weeks of decline on weak Chinese and Euro demand.