Copper is one of the most important industrial commodities used in most industries, from construction and energy to electronics.
Experts estimate that the global copper market deficit is expected to intensify in the second half of 2021, driven by increased demand for this metal. The average copper price is forecast to be around $8625 this year and rise to an average of $9175 per ton in 2022. At the same time, growth towards the $10k mark will not be uniform due to seasonal declines in demand and possible periods of price consolidation.
Lockdowns and transport restrictions imposed due to the coronavirus epidemic have led to reduced spending on tourism, restaurants and entertainment, and the savings have been used to buy goods, namely home appliances and durable goods. In addition, people in many countries have taken up housing construction, which has also contributed to the increased demand for copper.
Among other things, the demand for copper is due to growing investments in the green economy. In particular, China alone is forecast to increase its demand for metal by 800,000 tonnes in 2021, thanks to strong support for smart energy and renewables.
Analysts believe that the growth in the market is still far from over. Experts said they now expect a steadily higher average price for the metal in 2022. So now everyone needs to adapt to the state of the market and find ways of operating in it.