Decarbonisation demand will support copper prices

Significance

Record imports by China caused demand to exceed supply, creating a market deficit of 1.2% (278,000 tonnes) in 2020. Dollar weakness in the second half of 2020 added to nominal gains, and seasonal fourth-quarter demand provided additional support.

Impacts

• The Democratic Republic of the Congo has postponed its plan to ban copper concentrate exports until the end of April.
• Barrick is rumoured to be thinking of buying Arizona-based Freeport; this would create a copper-gold mining powerhouse in North America.
• Ivanhoe’s study of its Kakula mine (Democratic Republic of the Congo) claims it is the world’s most environmentally friendly copper miner.