Commerzbank’s Thu Lan Nguyen highlights that the copper supply surplus rose to around 300,000 tonnes earlier this year as production increased while demand stagnated. In February, there was a significant drop in demand, and prices reached nearly USD 13,000 per tonne. The bank argues that recent rapid price increases and increased energy costs limit the short-term upside potential for copper prices.
Surplus and delicate demand cap growth
“The monthly report data now shows that in the first two months of this year, oversupply has actually increased by more than 100,000 tonnes compared to the previous year, reaching around 300,000 tonnes.”
“However, the trend shows that while demand increased slightly in January, there was a significant decline in February. The high level of copper prices – copper trading at around $13,000 per tonne, up almost 40% from February last year – likely played a role.”
“The sharp recovery in prices in recent weeks, coupled with ongoing uncertainty around persistently high energy prices, does not bode well for future demand trends. We therefore believe that further upside potential for copper prices is limited, at least in the short term.”
(This article was created with the support of an artificial intelligence tool and has been reviewed by an editor.)
