Soaring demand for copper will help drive mergers, BHP CEO says
Demand for copper, a key element in the energy transition, is set to rise by 70% to 100% by 2050, Mike Henry said
The copper price fell on Friday after investors were disappointed with modest stimulus measures announced by China to boost its economy.
Copper for delivery in September was down 0.42% on the Comex market in New York, touching $3.81 per pound ($8,382 per tonne).
Click here for an interactive chart of copper prices.
Chinese authorities unveiled measures to boost consumption of automobile and electronics items as part of a broader drive to shore up the country’s faltering economy.
“Everyone is still pretty downbeat in terms of China. There are measures they try to come up with, but the hard numbers still look quite poor in terms of Chinese activity, especially in things like construction,” said Dan Smith, head of research at Amalgamated Metal Trading.
“Europe also looks pretty weak in terms of manufacturing and generally for base metals demand. We expect that the next few months are going to be weak in metals, even for copper, on which we’re more bullish for the medium term.”
For copper, downstream consumption in China was limited in the off-season and supply tightness in the spot market has marginally eased, said Jinrui Futures in a report, adding that downward risk to copper price remained.
Also weighing on the market have been forecasts of rising supply. Glencore on Friday reported lower copper, zinc, and nickel production in the first half, but expected higher volumes at some of its mines in the second half.
(With files from Reuters)
