Copper price jumps

The copper price has recorded a 6 per cent rise, sealing a seven week high for the metal.

The metal sat around $5390 per tonne on Friday, for December deliveries.

This is a massive leap from the six year low it reached in late August, when it briefly fell below the US$5000 per tonne benchmark.

Much of this leap was brought about by Glencore’s plans to slash around 400,000 tonnes of copper cathode from the market over the next 18 months by shutting down two of its African operations.

Added to this is the slowing down of global production compared to forecast demand.

A study by Wood Mackenzie found that there will be a 10 million tonne supply deficit by 2028.

That’s equal to the annual production of the world’s biggest copper mine (Escondida) multiplied by a factor of ten.

 

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