Ann: Presentation - Euroz Hartleys Institutional Conference 2023, page-19

Interesting article x Resource rising stars , copper .
Talk of imminent copper shortage dominates global metals conference With copper stockpiles down to just days, the BMO conference in Florida was abuzz with chatter of a looming price spike. Despite all the economic gloom around the place, copper has worked its way back to more than $US4/lb.It’s a big performance when it is remembered that the red metal averaged $US3.57/lb in the second (December) half last year after having sunk as low $US3.18/lb in the first half. The price remains well short of the record $US4.87/lb briefly achieved in early March last year before succumbing to recession fears because of the start to inflation-fighting interest rate rises. This week’s reclaiming of $US4/lb has been attributed to a lower US dollar in response to Federal Reserve chair Jerome Powell toning down previous hawkish comments on future interest rate rises. But there is more than that to copper reclaiming $US4/lb, remembering that it is a historically high level regardless of last year’s $US4.87/lb peak. China’s re-opening from COVID is a major factor in copper’s rebound. And disruptions to production at a number of mines across Latin America is another factor. But more than that is a key message that emerged from the recent BMO Metals, Mining and Critical Markets conference in Florida, which is attended by all the big miners. The message was that there is a real shortage of copper. That has shown up in warehouse data where stockpiles are down to days of consumption rather than weeks, all at a time when the world’s copper-intensive decarbonization through electrification is growing hand over fist.
THE Article goes on and well worth a read .