Copper Emerges as Top Industrial Metal
Copper is set to outshine other industrial metals this year, thanks to a series of supply disruptions. Currently priced at $8,600 per ton, copper prices have witnessed a 2.5% increase this year, driven by constrained supply in the global market.
Factors Contributing to Supply Tightness
The closure of a major copper mine in Panama, coupled with Anglo American’s significant reduction in its copper production forecast, are key factors impacting supply. The Bank of Montreal estimates that these developments could lead to a 3% drop in global copper supply, approximately 750,000 tons less than previously projected.
Market Outlook Shifts
Colin Hamilton, Managing Director of Commodity Research at the Bank of Montreal, notes a positive shift in market expectations for copper in 2024. Just two months ago, the outlook was less optimistic, but current trends suggest that a downturn in the copper market is now unlikely. 
