Markets in Motion
Copper On The Rise
Although demand for copper is high, in part due to its role in the energy transition, the potential for a copper shortage is drawing concerns about how to move forward.
Published: July 14, 2022
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The Future Of Copper: Will The Looming Supply Gap Short-Circuit The Energy Transition?
Today, copper is essential to the energy transition as a "metal of electrification". However, a looming mismatch between current copper supply and future copper demand may present challenges to achieving Net Zero Emissions by 2050.
In our study, The Future of Copper: Will the looming supply gap short-circuit the energy transition?, we examine the key role copper will play in the energy transition and potential obstacles.
Download our free report to get a glimpse into the future of copper.
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Market opportunities are emerging for copper and aluminum product recycling, due to growing demand for copper and aluminum metal overall, according to speakers at the Bureau of International Recycling (BIR) conference in Barcelona this week.
Of the 14 million mt of secondary copper generated annually on a global basis, only 9 million mt/year are currently recycled, Inka Guixa, of Spanish copper processor La Farga, told delegates during the non-ferrous metals panel at the event.
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More than 700 million mt of copper will need to be mined in the next 22 years to maintain 3.5% GDP growth, without taking into account the electrification of the global economy, which is the same volume of copper ever mined, Ivanhoe Mines Founder & Co-Chair Robert Friedland told the Investing in African Mining Indaba 2022 on May 11.
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Base Metal Prices Plummet Amid Growing Recession, Demand Fears
Nickel and copper prices plummeted in 2022 amid economic gloom and mounting recessionary fears, despite supply tightness and low stockpiles.
Copper price dropped nearly 20% in recent months to $8,397.00 per tonne on June 23 from an April high of $10,451.75/t. Meanwhile, prices for nickel fell nearly 30% to $23,993.50/t on June 23 from $33,875.00/t on April 21.
Year-to-date copper price ($/tonne)
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Listen and subscribeCopper In Initial Resources Hits 7-Year High
The number of copper initial resource announcements jumped to 18 in 2021, a seven-year high, from 13 in 2020, although the contained copper fell 2% to 9 million tonnes.
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Copper TC/Rcs Face Further Pressure In Q3 From Tight Clean Concentrate Supply, Higher Demand
Asian demand for copper concentrates will likely be supported in the third quarter by healthy margins and an increase in smelter production capacity in China, while clean copper concentrate output is expected to lag consumption, placing downward pressure on the country's treatment and refining charges.
TC/RCs are fees paid to smelters by mines for converting copper concentrate to copper cathode, and falling TCs signal that copper concentrate supply is tight.
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Workers at Codelco, the world's largest copper producer, have agreed to end a nationwide stoppage in Chile that has slowed operations, the state-owned mining firm and unions said in a joint statement June 23.
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Growing Appetite for Copper Threatens Energy Transition and Climate Goals
Demand for copper will double by 2035, opening up a supply gap that threatens climate goals and poses serious challenges the Net-Zero Emissions by 2050.
This demand growth during the energy transition — a pathway toward transformation of the global economy to Net-Zero Emissions by 2050 — will be particularly pronounced in the United States, China, and Europe. India will also exhibit strong copper demand growth, more from traditional copper applications than from the energy transition.
John Mothersole serves as director of research for the pricing and purchasing service at S&P Global Market Intelligence.
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