The average annual copper price is forecast to drop by 6% y-o-y to $8,800 per tonne this year. Boosting supply in the global copper ore market is to push prices down while the worldwide demand languishes with slowed construction activity in China.
LOS ANGELES, Jan. 14, 2022 (GLOBE NEWSWIRE) -- Rising supply in the global copper ore market to make prices go down, a recent report from IndexBox states. According to the World Bank, the average annual copper price soared by 51% y-o-y to $9,317 per tonne in 2021 but is set to decline approximately to $8,800 per tonne this year.
The forecast is shaped by boosting copper ore supply thanks to the launch of the Kamoa-Kakula mine in the Congo, while global demand is reducing with slowed down construction activity in China. The mine owner, Canadian company Ivanhoe Mines, has announced its plans to increase production from 106K tonnes in 2021 to 340K tonnes in 2022.
Global Copper Production
In 2020, the global output of copper fell to 20M tonnes, dropping by -2.3% compared with the previous year's figure. In value terms, copper production decreased to $136.3B, estimated at export prices.
The country with the most significant volume of copper production was Chile (5.7M tonnes), accounting for 28% of total output. Moreover, copper production in Chile exceeded the figures recorded by the second-largest producer, Peru (2.2M tonnes), threefold. The third position in this ranking was occupied by China (1.7M tonnes), with an 8.3% share.
Global Copper Exports
In 2020, approx. 1.7M tonnes of copper were exported worldwide, growing by 16% compared with 2019 figures. In value terms, supplies surged to $11.1B.
Zambia represented the major exporter of copper globally, with the volume of exports amounting to 675K tonnes, which was nearly 40% of total supplies. Chile (283K tonnes) ranks second with a 17% share, followed by Bulgaria (7.1%) and the Democratic Republic of the Congo (5%). Belgium (76K tonnes), Namibia (61K tonnes), Spain (56K tonnes), Slovakia (55K tonnes), South Africa (52K tonnes), Pakistan (38K tonnes), the Philippines (34K tonnes) and South Korea (31K tonnes) were a long way behind the leaders.
In value terms, Zambia ($4.2B) remains the largest copper supplier, comprising 38% of global exports. The second position in the ranking was occupied by Chile ($1.7B), with a 16% share of total supplies. It was followed by Bulgaria, with a 9.4% share.
About IndexBox
IndexBox is a market research firm developing an AI-driven market intelligence platform that helps business analysts find actionable insights and make data-driven decisions. The platform provides data on consumption, production, trade, and prices for more than 10K+ different products across 200 countries.
For more information, please visit
Website https://www.indexbox.io
Twitter https://twitter.com/indexbox
YouTube https://www.youtube.com/IndexBox
LinkedIn https://www.linkedin.com/company/indexbox-marketing/
Companies Mentioned in the Report
Ivanhoe Mines, Codelco, Freeport-McMoRan Copper & Gold, Glencore, BHP, Southern Copper Corporation, KGHM Polska Miedź, Rio Tinto, First Quantum Minerals, Antofagasta, Vale, Grupo Mexico, GD copper, Anglo American, Xstrata, Freeport, Southern Copper, First Quantum, Russian Copper Company, Highland Copper Company Inc, World Copper Ltd., Copper Mountain Mining Corporation
Sources
World - Copper - Market Analysis, Forecast, Size, Trends and Insights
World - Copper Ores and Concentrates - Market Analysis, Forecast, Size, Trends and Insights
U.S. Copper and Copper Alloy Products Market. Analysis and Forecast to 2025
Africa - Copper - Market Analysis, Forecast, Size, Trends and Insights
China - Copper - Market Analysis, Forecast, Size, Trends and Insights
