Copper – surplus or deficit

The economic metal copper suffers when the economy weakens. Recessions don’t do the metal any good. But if recessions ease and, in addition, the demand for copper caused by climate change increases, then a deficit could arise. Although the International Copper Study Group predicted a copper surplus just a few months ago, there are indications that a deficit is more likely. According to estimates, the reddish metal will be in deficit at the beginning of 2023. This is because protests in Peru, the second strongest producer country, caused not inconsiderable losses in production. Compared to December 2022, the month of January 2023 is down 21 percent, according to the Ministry of Energy and Mines. The recognized rating agency Fitch, for example, sees excess demand and thus a positive price trend for copper in the current year. Fitch is by no means alone in this view; many banks, mining companies and other rating agencies share the same opinion.

And the current decline in the copper price should not obscure the fact that the future will require a lot of copper. Even though a weak economic phase is currently putting pressure on the price. Fitch predicts a deficit not only for this year, but also for the years to come. Supply will not be able to meet demand. This could result in a deficit of nine million tons of copper by 2030, as the electrification wave rolls on. Good, then, for companies that have copper in their projects, such as Hannan Metals or Torq Resources.

Hannan Metals – https://www.commodity-tv.com/play/mining-newsflash-with-alpha-lithium-hannan-metals-gold-royalty-and-targa-exploration/ – is working on its prospective San Martin copper-silver project in Peru. The Valiente copper-gold project (Peru) and a zinc-silver project in Ireland complete the portfolio.

Torq Resources – https://www.commodity-tv.com/ondemand/companies/profil/torq-resources-inc/ – owns excellent interests in the copper and gold sectors in Chile.

Current corporate information and press releases from Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -) and Torq Resources (- https://www.resource-capital.ch/en/companies/torq-resources-inc/ -).

In accordance with §34 WpHG I would like to point out that partners, authors and employees may hold shares in the respective companies addressed and thus a possible conflict of interest exists. No guarantee for the translation into English. Only the German version of this news is valid.

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