Copper futures ended a record-setting rally to trade lower around $4.7 per pound after a surge in US consumer prices prompted a rise in the dollar, making greenback-priced metals cheaper. Still, fundamentals have not changed given how crucial copper is in the transition to a carbon-free world, demand is due to outstrip supply due to lack of investment by large miners. Early in May, copper jumped to a record $4.9 per pound as inventories stand at levels not seen in fifteen years while speedy vaccination rollouts and trillions in dollars of economic stimulus boosted demand. Meantime, the world’s top producer Chile passed a measure that would introduce progressive taxes on copper sales starting in 2024 and with the highest bracket set at 75%, pending the approval by the senate and the government.
Historically, Copper reached an all time high of 4.90 in May of 2021. Copper - data, forecasts, historical chart - was last updated on May of 2021.
Copper is expected to trade at 4.55 USd/LB by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4.19 in 12 months time.