MB INTL COPPER CONF: Copper price will firm towards $7,000/t as deficit emerges, SocGen’s Bhar says

Copper prices have further room to rise towards $7,000 per tonne in the longer term due to an incoming refined deficit in 2018, Robin Bhar, head of metals research at Société Genéralé (SocGen), told delegates at the Metal Bulletin International Copper Conference in Leipzig.

“Demand dynamics are excellent: we see uplift from renewable energy, electric vehicles, hybrid vehicles, the ‘One Belt One Road’ initiative in China. But really it’s the supply underperformance going forward and supply needing to be supported through higher prices,” Bhar said. Mined copper production should peak around 2018 due to reserve depletion and capacity closures, coming against strong demand from China, he added. “There may be a bit of upside to come this year, but I think [the markets will be even] more exciting over the coming years. We take the view that global copper consumption is going to stabilise at around 2.5%, [and] that requires new supply to be financed and developed,” Bhar said. SocGen are forecasting that a refined deficit emerging in...


Archie Hunter

March 15, 2017

11:45 GMT