Copper yesterday settled down by -0.24% at 762.65 as the global market should see a surplus of 79,000 tonnes this year and of 109,000 tonnes in 2022, the International Copper Study Group said. Top copper producer Chile saw the output of the red metal fall for the tenth consecutive month in March, official data showed, marking a modest but continual slide in production that began shortly after the COVID-19 pandemic struck the country.
Factory activity in top metals consumer China expanded at a slower-than-expected pace in April as supply and transport bottlenecks weighed on production and overseas demand lost momentum.
Copper’s rally, driven by a combination of optimism about recovery prospects for the pandemic-hit global economy and supply concerns, is likely to stall in the second half of 2021 as China reins in stimulus spending.
Goldman Sachs (NYSE:) forecast copper would average $9,675 a tonne in 2021, $11,875 a tonne in 2022 and $12,000 a tonne in 2023. However, Yangshan copper premium fell to $43 a tonne, its lowest since April 2017, indicating weakening demand from top consumer China as prices have leapt 24% this year. The global world refined copper market showed a 28,000 tonnes surplus in