Commodities
Copper Market Shifts into Deficit as Supply Disruptions Mount
The copper market has slipped into deficit due to supply disruptions at major mines in Chile and Peru.
Commerzbank's commodity analysts note that a combination of operational issues, lower ore grades, and project delays have led to a downward revision in global mine production forecasts for 2024 and 2025.
The deficit is expected to persist into 2025, tightening the market and supporting higher copper prices. As of late 2024, copper traded around $9,000 per metric ton on the London Metal Exchange.
Commerzbank's analysis suggests that sustained supply constraints could push copper prices higher in the coming quarters, potentially breaking through previous resistance levels.