Copper Futures Surge On Strong Spot Demand

Copper Prices Rise Amidst Robust Global Demand

Latest Developments

* Copper futures prices on the Multi Commodity Exchange (MCX) surged due to increased spot demand. * Stockpiles in London reached their highest levels since October 2021. * Sanctions on Russian metals and a tight market have contributed to a surge in copper futures.

Global Drivers

* Flourishing electric vehicle (EV) power infrastructure, AI, and automation are driving copper demand. * Robust demand from China in the first half of 2023 is supporting prices amidst decarbonization efforts. * Anticipated demand growth in 2023 could reach 2%, driven by China's economic recovery.

Market Outlook

* Refined copper market remains balanced, with a global capacity of 265 million tons. * Supply disruptions and increasing demand could lead to record-high copper prices in 2023. * Depletion of copper reserves could occur due to the rebound in Chinese demand.

Sources

* [Bloomberg](https://www.bloomberg.com/news/articles/2023-04-22/copper-stockpiles-jump-to-highest-since-october-2021-in-london) * [Reuters](https://www.reuters.com/business/commodities/copper-prices-surge-record-high-rebound-chinese-demand-risks-depleting-2023-04-13/)