RE:Copper supply shrinking rapidly juniorbullalive wrote: Supply gap becomes a chasm
On the supply side, Snowdon points to the collapse in treatment and refining charges (paid by miners to smelters) which reflects underperforming mine supply as evidenced by exports from Chile and Peru, which have not recovered as expected this year.
Green-related demand will gather pace in the second half of this decade, ultimately generating nearly 5 million tonnes of additional demand, according to the Goldman forecast.
Set against a peak in global mine supply from 2024 onwards, Snowdon says these fundamentals will generate “a record long term supply gap by the end of the decade that has to be solved by investment in new mine capacity.”
The long-term supply gap has really opened up in the last few years and at the current 8 million tonnes is close to double the supply gap during the last bull market in the 2000s and early 2010s.
“This can only be resolved by higher prices stimulating investment in new supply,” says Snowdon.
PS : Congrats to Red Smear who got TWO thumbs up ! ( from Redsmear and Malacha ) King of the Boreds indeed !
Junior makes an excellent point