Copper Should Find Support Through 2021 on Demand and Supply Disruptions
In the latter part of 2017 the price of copper hit a four-year high of $7,259 per ton. For the entire year gains will climb to about 40 percent.
Much of this is being driven by Chinese imports, which soared by 329,168 tons from November of 2016 to November of 2017.
Along with an increase in Chinese demand for copper, the other catalyst has been supply disruptions. In 2018 more disruptions are expected to come because of 19 labor agreements that will be entering into negotiations. Most of the negotiations will be taking place in Chile and Peru.
With supply issues and Chinese demand, the copper market is expected to tighten through 2021, pushing up prices. The timing of that isn’t guaranteed, but it will happen during that period of time.