Copper futures eased to around $4.7 per pound as China’s pledge to bring down coal prices cooled down fears about supply disruption in metals. Yet, the price of copper remains close to a record high of $4.9 hit in May, with strong bullish fundamentals supporting the metal as soaring demand depleted stocks and supply disruptions in top producer Chile linger. Freely available stockpiles have shrunk by more than 90% over the last couple of months and sit near multi-decade lows in LME-monitored warehouses, a trend also seen in Chinese and American inventories. Adding to concerns, a Peruvian community will block a key road in a major copper mine in Peru, the world’s 2nd largest producer, after failed negotiations with 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 October of 2021.
Copper is expected to trade at 4.81 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 5.10 in 12 months time.