Copper prices rose for 10 consecutive days, hitting an 8-year high, approaching 70,000
International copper prices have continued to rise recently! On the night of the 19th, it has risen by 2050; the price of copper has broken the 65,000 early-stage wait-and-see target, and the recent increase is a record high for copper prices in eight years.This is mainly due to the smooth vaccination and the US fiscal stimulus measures, which boosted the economy and expected market demand. At the same time, the outside world is full of confidence in the Biden government. Biden’s recent economic stimulus plan focuses on the so-called new infrastructure and New urbanization will boost industrial metal demand.
On the demand side, the global economic recovery in the post-epidemic era will significantly boost copper demand. In recent years, new copper mines have decreased significantly, and supply and demand are tight.During the Spring Festival, the Hong Kong stock Zijin Mining surged 25%. The reason behind it was that copper prices are expected to exceed expectations under the expected economic recovery. Citigroup has raised its copper price forecast for 2021-2022 from US$7,800 per ton to US$10,000/ton, and is expected to reach US$12,000/ton under optimistic expectations.
It is estimated that the global economy will grow by 5.5% in 2021, and the Chinese economy will grow by 8.1%. The global economic recovery will significantly boost copper demand, which is good for copper prices.
The number of newly discovered copper mines in the world is decreasing year by year, and the number of newly-increased copper mines in production has declined, and the supply of copper concentrates is relatively short.
In addition, carbon neutrality will bring additional growth to the demand for refined copper. Clean energy is expected to continue to drive grid investment, and my country's electricity demand for copper accounts for up to 48.5%.
The drastic changes in copper prices will cause chaos in the cable industry. Short-term surges will cause customers who have not signed contracts to wait and see, and manufacturers who have signed contracts will default.
Benefiting from the recovery of the domestic economy and the improvement of the export market, the current boom of the wire and cable industry is in a relatively good period in history. The continuous shortage of raw materials means that the increase in copper prices will not stop in a short period of time. The next price increase may be Will be more fierce.