Copper's costly climb: How supply shortages are shaping the market
BNN Bloomberg
Copper prices breached the US$10,000 per ton mark again this week, propelled by projections of tightening global supplies and heightened demand from the electric vehicle and power sectors, which offset weakening demand from China, the largest consumer of the red metal.
Copper has seen a 16 per cent increase in price this year, driven by anticipated shortages and aging mines struggling to meet demand. The high prices have been a boon for copper producers, such as Torex Gold Resources Inc., which is set to greatly increase its production of the red metal. According to chief executive officer Jody Kuzenko, “We're so pleased to be in the copper story. When [our] Media Luna [project] is up and running it will produce about 45 million pounds of copper a year.”
Media Luna, in Mexico, is expected to come online at the end of the year, by which point copper prices could be as high as $12,000 per ton, according to Goldman Sachs. The bank cites persistent supply challenges and potential severe shortages by the end of the year as bullish indicators, and Ms Juzenko holds a similarly positive point of view, “We like copper. We're quite bullish on it. I see no scenario where supply meets demand over the next 10 to 15 years.”
The Panamanian problem
