COPPER PRICE CLIMBS AS CITI ANALYST PREDICTS CU DEFICIT “We are seeing some outright growth in developed market metals consumption in the construction, consumer appliances, and automotive sectors, as covid-19 drives home renovations and new home demand,” Citi analyst Oliver Nugent told Reuters.
Market deficit
Nugent expects the copper market to shift into a deficit in the second half of the year, resulting in a small surplus overall for 2021 followed by deficits in 2022 and 2023.
“In 2021, the market will pay more attention to the world ex-China demand than it has arguably done for the past decade,” Nugent said. “A data point people are talking about more and more is housing starts in the United States.”
According to BoA Securities analyst Michael Widmer, global copper consumption is forecast to rise 6% to 24.76 million tonnes this year after a 1.3% drop last year. He also sees Europe’s share of this at 3.1 million tonnes, a 10% jump from 2020.
Copper is doing very well and will only get better, glad to see Candente Copper has billions of it.
February 3, 2021