Commodities
Morgan Stanley Warns of Copper Production Slump Amid Record Price Surge
Copper prices have reached new highs, reaching $14,694 per ton on the London Metal Exchange (LME) three-month copper contract. This marks a new all-time high and comes as global copper mine supply expectations weaken.
Morgan Stanley has lowered its forecast for global mine supply growth to basically flat or even a slight decline. If this materializes, it would mean global copper mine production sees its first annual drop since 2017.
The US' potential tariffs have triggered a 'scramble for supplies,' further aggravating the misallocation of global inventories. Chile has lowered its annual production expectations for the second consecutive quarter.