Copper Deficit Impacts Global Economy

Copper price declined, this weekend, after China said that it would closely monitor market conditions.
The Chinese state planner will also continue to free policies concerning copper, aluminum and zinc from its state reserves, in an effort to maintain balance and encounter long-term mismatches between supply and demand.
As a direct consequence to the Chinese measures, copper for December delivery fell 3 cents to USD 4.25 a pound.
Copper futures have been trading above USD 4 per pound since February 2021, and hit a record high of USD 4.9 in May supported by strong demand from the manufacturing industry and supply disruptions.
Forecasts of the global copper market to be in a supply deficit are estimated by 153,000 tonnes in 2021, while it is expected that markets will see a surplus of 190,000 tonnes for 2022.
Copper, aluminum, and zinc prices are still high, this is why the Chinese authority seeks to guide prices back to more reasonable levels.
Once global economies began to reopen in the second half of 2020, several shortages impacted industries in different sectors.
The copper market is expected to come under increased pressure as renewable energy technologies that rapidly grew over the next three decades, with tremendous effects on investors in the renewables’ sector.