Copper appears to have stabalised at GBP 7 / kg as bonded stocks recover to 131 kT.
Reports from China are that COVID outbreaks are impacting post operations, with imported raw materials not being able to offload and exported goods not being able to be shipped. This is have implications up and down the supply chain and potentially reducing demand from China.
Potential strike action at Antofagasta, ongoing droughts and a mounting maintenance backlog at the copper mines around the world have raised concerns about long term copper supplies, but the current price of copper makes a very good return on investment for the miners and processors to increase production.
I still think that the price of copper will fall back to £6 /kg once the copper producers relax COVID restrictions and ramp up production. How long that will take is anyone’s guess ?