In Would possibly, Copper provide exceeded call for via 65 thousand heaps, with the ICSG reporting a provide surplus of 416 thousand heaps for the primary 5 months. Despite the fact that seasonal results play games a task right here and the seasonally adjusted marketplace surplus additionally reported via the ICSG used to be ‘only’ 250 thousand heaps, Commerzbank’s commodity strategist Barbara Lambrecht notes.
Prime provide surplus at the Copper marketplace
“The availability and insist figures revealed the day before today via the World Copper Learn about Staff showed an amply provided marketplace for Would possibly and the primary 5 months of the wave past: In Would possibly, provide exceeded call for via 65 thousand heaps, with the ICSG reporting a provide surplus of 416 thousand heaps for the primary 5 months.
“Even though seasonal effects play a role here and the seasonally adjusted market surplus also reported by the ICSG was ‘only’ 250 thousand tons, the surplus is still high by historical standards and already exceeds the expected supply surplus of 162 thousand tons that the ICSG had forecast in April for 2024 as a whole.”
“The main reason for this was the sharp rise in Copper refining production: around 6% more was produced worldwide in the first five months than in the previous year, primarily due to China’s sharp rise in production, while demand ‘only’ increased by 3.7% during this period. Copper mine production in the period considered was still 4% up on the previous year: the ICSG expects growth of only 0.5% for the year as a whole.”
