The International Copper Research Organization said on Wednesday that the global copper market is expected to experience a deficit of about 325,000 tonnes this year and a surplus of 155,000 tonnes in 2023.
“Continued COVID-19-related restrictions and labor shortages, operational and geotechnical issues, strikes, water restrictions in Chile, lower-than-expected mine manager levels, and community action in Peru, restrictions,” the agency said in a release. mine production from multiple operations this year.”
Three-month copper on the London Metal Exchange traded around $7,363 a tonne on Wednesday, having fallen more than 30 percent since hitting a record high of $10,845 in March as recession fears intensified.
Global refined copper use is expected to grow by about 2.2% in 2022 and 1.4% in 2023, the ICSG said.
“The worsening global economic outlook, driven primarily by higher energy prices and high inflation, has led to downward revisions to refinery use growth in 2022 and 2023,” the agency said.
Global refined copper production is expected to grow 2.8% in 2022 and 3.3% in 2023, the ICSG said.