like a win-win ann in the meanwhile copper is doing its thingCopper and zinc prices set to rise
Copper and zinc prices have soared in October, due to curtailed production of refined copper and zinc amid power shortages in China.
But according to S&P senior analyst Aline Soares and associate commodity analyst Mitzi Sumangil, the energy crisis may take some time to resolve, sustaining elevated copper and zinc prices – and it could negatively impact economic growth in 2022.
“On the supply side, mined copper output is expected to rise to 23.8 Mt in 2022 from 21.2 Mt in 2020, relieving tightness in the concentrate market,” they said.
“The industry still faces a big challenge, however, as our production forecasts for operating mines do not account for any ESG-related disruptions — an important factor that has affected mines, mainly in Chile where a water shortage has constrained output at some operations.”
Pic: Copper demand from solar and wind energy spiked in 2020 and remains strong in coming years.
Copper demand bolstered by electrification
The analysts said that refined copper output growth will lag refined copper demand in 2021-25.
“With its significant use in solar photovoltaic panels, wind power generation and electric vehicle production, copper will be the key beneficiary of the energy transition,” Soares and Sumangil said.
“We forecast global copper demand from solar and wind energy generation to reach 852,000 tonnes in 2022 and the growing electric vehicle market to account for 1.1 Mt in 2022.
“In addition, we expect rising demand due to expanding electrification infrastructure and upgrades to telecommunications infrastructure, particularly in China and the US.”
