Copper poised to rally above $7,000/t in 2021, ERG CEO says

Copper prices are poised to move above the $7,000-per-tonne level next year as the supply impacts of the Covid-19 pandemic last well beyond this year and the market enters a prolonged period of structural undersupply, the chief executive officer of Eurasian Resources Group (ERG) said.

According to Benedikt Sobotka, around 700,000 tonnes of mined copper output has been lost to date due to disruptions related to the pandemic, with further disruptions looming in South America - especially in Chile. 
Capital expenditure cuts have also been made by copper miners while the project pipeline is shrinking due to Covid-19 lockdown-related delays, he noted. 

Visible copper inventories are down by a third year on year, copper concentrate treatment and refining charges (TC/RCs) have narrowed to the lowest level since 2012 and cif Shanghai cathode premiums firmed to multi-year highs in...

Published

Andrea Hotter

July 06, 2020

17:38 GMT

New York