Koryx Copper Inc. V.KRY

Moody comments on the copper market

[Yepnewpapy]

Strong fundamentals remain in place

In a recent note Moody Investor Service said prices will ease from the January highs during 2021-22 as supply normalizes through 2021, in particular in large producing countries such as Chile and Peru, which together account for about 40% of world copper production.

The market will remain tight over the next six to 12 months, with new supply delayed because lockdowns and mobility restrictions last year led copper producers to suspend projects in progress.

Industrial activity and infrastructure investment, as well as economic recovery in developed countries that are large users of copper, such as Japan, the US, and the EU and the UK will also buoy prices:

We see long-term demand fundamentals as positive, based on infrastructure investments and an ongoing gradual shift toward electric vehicles.
 
Incremental supply coming from greenfield projects remains limited, while some brownfield expansions will only replace depleting reserves, rather than adding to overall capacity, which supports long-term copper prices.