The copper super cycle is coming?

According to a report on the website of the Financial Times on April 29, as the economy rebounded from the new crown epidemic, demand in China and developed countries has surged and supply is difficult to keep up.
Copper transaction prices have exceeded US$10,000 per ton for the first time in a decade.
Copper is the most important industrial metal in the world.

According to reports, in March of this year, copper prices fluctuated due to fears of new lockdown measures in Europe and the strengthening of the US dollar, but then resumed the strong rebound that began after falling to US$4,300 per ton a year ago.

Since the beginning of April, copper prices have risen by 11% and are now close to the historical high of US$10,190 per ton set during the commodity boom in 2011.

Bart Melek, director of commodity strategy at TD Securities in Canada, said: "As the signal of re-inflation comes on, copper prices may test the highest point in history.

According to the report, copper is used in the manufacture of various products ranging from household appliances to electric cars and wind turbines.

According to the report, as the most cost-effective conductive metal, copper is expected to play an important role in the transition from hydrocarbons to more sustainable energy sources such as solar and wind energy.

This has led to discussions about the copper super cycle (a period in which continued strong demand drives copper prices to record highs).

　　However, Citibank analyst Max Leighton believes that the recent rise in copper prices reflects the imbalance between supply and demand caused by the new crown epidemic, which may lead to a reduction of 500,000 tons of refined metal stocks this year.

　　Leiden said: "The'super' part of the copper super cycle is currently in full swing, reflecting the strong cyclical rebound in China and the unusually rapid metal-intensive rebound in the United States and Europe.

　　On the supply side, the lockdown and restrictions related to the new crown epidemic have affected copper production.

　　According to the report, although the rise in copper prices will eventually bring new supply, it will take time to form.

　　Transfer from: Reference News Network

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