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On Thursday, copper surpassed $ 10,000 per tonne for the first time since 2011, approaching a record high for that year.
“This is an extremely positive story for copper now and in the long term,” WisdomTree analyst Nitesh Shah told Reuters.
“In the next few years, we are likely to see an increase in copper demand, and this will support prices.”
Copper stocks in LME-approved warehouses fell 6,325 tons to a five-week low of 137,000 tons, down 20% since mid-April.
In warehouses controlled by the Shanghai Futures Exchange, weekly data on Friday showed that stocks fell 1.3% from the previous week.
Analysts at Bank of America noted that copper could rise to $ 13,000 per tonne in the coming months, in part due to low reserves.
The cash premium for copper was $ 4 per tonne over three months, fueling concerns about an immediate supply.
As the International Copper Research Group (ICSG) said on Monday, the global copper market should have surplus 79,000 tonnes this year and 109,000 tonnes in 2022.
“After three years in which global production of copper mines has remained largely unchanged, adjusted for historical disruption factors, it is expected to grow by about 3.5% in 2021 and by 3.7% in 2022,” says in the ICSG message.
“This estimate by ICSG is in stark contrast to the estimates of many other market participants, who assume that the copper market will be seriously understaffed this year,” analysts at Commerzbank said.
(With files from Reuters)