Reduced supply from major copper producers Panama and Peru may flip the global copper market into a deficit from surplus in 2024 or at least tighten oversupply if the disruptions are not resolved in coming months, analysts said on Tuesday.
LONDON, Nov 28 (Reuters) - Reduced supply from major copper producers Panama and Peru may flip the global copper market into a deficit from surplus in 2024 or at least tighten oversupply if the disruptions are not resolved in coming months, analysts said on Tuesday.
Panama’s top court on Tuesday ruled that Canadian miner First Quantum’s (FM.TO) contract to operate the Cobre Panama mine there is unconstitutional, while a union representing half of the workers at Peru’s Las Bambas mine went on strike.
If the Cobre Panama mine were to be permanently shut, then the market could easily move into deficit in 2024, said Macquarie analyst Alice Fox.
Bank of America’s 2024 base-case scenario sees the global copper market surplus at 150,000 metric tons, said analyst Michael Widmer.
Copper, used in power and construction, is widely expected to benefit from the green energy transition in coming years, however it is up just 1.2% so far in 2023 amid patchy post-pandemic recovery of top metals consumer China and concerns about economic growth elsewhere.
This could be the trigger for some longer-term investors to come in, especially given the deficit calls for the back half of this decade are now being brought forward," said Al Munro at broker Marex.
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LONDON, Nov 28 (Reuters) - Reduced supply from major copper producers Panama and Peru may flip the global copper market into a deficit from surplus in 2024 or at least tighten oversupply if the disruptions are not resolved in coming months, analysts said on Tuesday.
Panama’s top court on Tuesday ruled that Canadian miner First Quantum’s (FM.TO) contract to operate the Cobre Panama mine there is unconstitutional, while a union representing half of the workers at Peru’s Las Bambas mine went on strike.
If the Cobre Panama mine were to be permanently shut, then the market could easily move into deficit in 2024, said Macquarie analyst Alice Fox.
Bank of America’s 2024 base-case scenario sees the global copper market surplus at 150,000 metric tons, said analyst Michael Widmer.
Copper, used in power and construction, is widely expected to benefit from the green energy transition in coming years, however it is up just 1.2% so far in 2023 amid patchy post-pandemic recovery of top metals consumer China and concerns about economic growth elsewhere.
This could be the trigger for some longer-term investors to come in, especially given the deficit calls for the back half of this decade are now being brought forward," said Al Munro at broker Marex.
The original article contains 360 words, the summary contains 207 words. Saved 42%. I’m a bot and I’m open source!