Copper futures rose above $3.6 per pound from the two-week low of $3.57 touched on November 21st, as measures to stimulate construction and industrial activity coincided with looming supply concerns. Authorities in top consumer China lifted a ban on equity refinancing for listed property developers, shortly after the country’s top banks extended $162 billion in fresh credit lines for the sector. Additionally, the PBoC cut its reserve ratio by 25bps after rapidly increasing covid cases in the country drove the government to trigger strict lockdowns and business curbs. Concerns of upcoming shortages also supported copper futures to hover nearly 15% above the 20-month low of $3.2 hit in July. Commodity trader Trafigura warned that global copper stocks have fallen to record lows, with current inventories enough to supply world consumption for just 4.9 days. Freeport-McMoran was also vocal about shortage risks, stating that low prices do not reflect the tightness of the physical market.
Historically, Copper reached an all time high of 5.02 in March of 2022. Copper - data, forecasts, historical chart - was last updated on November of 2022.
Copper is expected to trade at 3.53 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 3.29 in 12 months time.