Data Showed That Copper Prices May Fall 28% By 2022

This week, prices have weakened, but due to low inventory concerns persist, copper is still under $10000 in shockAn option.Copper outbreak of a new champions league low more than doubled, this is because it is generally believed that the demand for the leading metal will be a huge boost, it not only from the expectations of new crown after economic prosperity, also from the global push decarburization.

Although almost everyone agrees that copper's long-term prospects are bright, but for the price of copper in the next few years is picking up, how much less people's consensus.Capital economics, a company (CapitalEconomics) to a new report that expectations about the future of the copper.The london-based independent researcher predicts that as China's demand to reduce and diversified supply of raw material increased, especially the Congo, Mr Khoja moire card (Kamoa Kakula), copper prices will fall by 2022.

Kamoa Kakula nearly is newly developed for decades one of the largest copper mine"First of all, high copper prices accelerated the increase of the mine supply, strike, bad weather, and will be the limitation of coronavirus slows down the mine supply growth. Can be seen from the increase of cash handling, mining of copper seems to be recovering now."Second, we demand is expected to slow. Our internal demand data show that demand has fallen. This is by the Chinese construction industry (the largest copper end user) slowdown driven."In addition, with the open end of the block and international tourism, global consumption patterns from products to service, we expect the demand for copper products will also be cooled.Processing and refining costs (TC/RCs) pay the smelter of miners to concentrate processing into refined metals costs rise in plentiful supply, decline in smelter are forced to compete for scarce materials.

Although TC/RCs has slightly more than $20 per ton from April record low rise to about $60 a tonne, but today's cost is still higher than peak as high as $130 in the 2010 s.