The outlook for copper prices.
Having seen prices halve over five years, the copper market has stabilised since the fourth quarter of 2016. The long bear market forced the industry to cut exploration and capital reserves, and demand rebounded in 2016, growing by 1.8%. This year the market has started to tighten as there have been supply disruptions.
- Chile’s output could rise in coming years as the government will inject 975 million dollars to bolster state-owned Codelco’s growth.
- In six years, Rio Tinto and Chinalco found no copper in China and have stopped looking, so China will remain the world’s largest importer.
- Chile’s miners, reliant on costly coal and gas, are reviewing bids from wind and solar power producers, which may dramatically cut costs.
- To increase its stake in two Congolese mines, Glencore spent more than 500 million dollars to buy out Israeli financier Dan Gertler.