This report analyses the global production, consumption and prices of copper. While leading copper production countries Chile and Peru are facing challenges in 2022 from rising social backlashes and environmental concerns, global production of copper is set to maintain growth thanks to ongoing developments of new mines and expanding capabilities of current ones. Copper prices are already on a downward slope as demand slowed down amid economic stagnation and supply maintained growth.
This report comes in PPT.
Copper prices are expected to maintain steady decline over the outlook period, as global demand cools down amid stagnating economic growth, soaring inflation and rising interest rates. Supply is also expected to expand as new mines are set to join operations in 2023. With sufficient supply and slower demand from construction and automotive sectors, global copper prices are expected to continue declining, to drop below the lowest levels which were observed during the pandemic.
The construction sector was among key drivers of the recovery of copper demand; however, the phasing out of subsidies, elevated uncertainties, rising prices of essential commodities and a robust rise in borrowing costs are anticipated to lead to slower residential construction demand over the forecast period. Likewise, economic uncertainties are likely to cool down demand for new vehicles, slowing down the automotive industry’s demand for copper products.
In light of booming natural gas prices globally, countries are turning towards renewable electricity generation, fuelling demand for solar panels, onshore and offshore wind farms as well as major upgrades in electric grids and electricity storage facilities to be able to accommodate renewables entering the grid. Production of electricity generation facilities, transmission networks and new interconnections between countries are set to support global demand for copper.
Rising emissions permit costs, increasing pressure from society and governmental regulations push the copper industry to seek solutions to reduce its carbon footprint. Sustainability is projected to become an important trend in the industry over the long term. Companies are also expected to invest in recycling of scrap metal waste aiming to lower the negative environmental impact of their production.
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