The 2023 copper prices experienced significant volatility due to various global economic factors. The demand for copper decreased in the first three quarters of the year, leading to fluctuating prices. Factors such as the strengthening of the dollar, increased borrowing costs, and slow economic recovery in China and Western countries contributed to lower prices.
Looking ahead to the future, copper demand is expected to double by 2035 driven by increased demand from Chinese manufacturers, global economic rebound, and investments in green and AI technologies. However, supply growth may not keep up with demand due to the lengthy process of constructing new mines and the ageing of existing mines.
In response to the growing demand, mining projects are being developed in countries like the Democratic Republic of the Congo, Zambia, and Pakistan to boost production. Additionally, countries like Chile and Peru, major copper producers, are facing challenges with slowing production and ageing mines.
Recently, copper prices reached a two-year high of nearly USD 10,000 per tonne due to shortages of copper ore. The surge in prices was driven by clean energy policies in the USA and Europe, coupled with low stockpiles. Sanctions imposed on Russia by the USA and the UK also impacted metal prices, leading to a rise in prices.
In the coming months, the copper market is expected to remain tight with prices likely to continue rising. Analysts anticipate supply shortages and potential price volatility due to various global factors. Stay tuned for updates on the dynamic copper market.
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