The recent surge in US copper stockpiling is reshaping the global supply and demand landscape, as significant inflows have been recorded this year. The source notes that this trend is raising concerns among analysts about future market dynamics and pricing.
US Copper Inflows Surge in 2023
Data indicates that US inflows of copper have increased by approximately 650,000 tons in 2023, bringing total inventories to around 750,000 tons. This influx is largely attributed to fears of impending tariffs on refined copper imports, set to take effect in 2027, which has prompted buyers to expedite their shipments into the country.
Forecasting a Market Deficit
Analysts are now forecasting a potential market deficit, as major mining companies are expected to reduce production levels. This anticipated decrease in supply, coupled with the rising demand from stockpiling efforts, could lead to significant price increases in the copper market in the coming years.
The recent developments in US copper stockpiling contrast with the notable surge in RMB to USD exchange rates, which reached a 14-month high. For more details, see the full article here.
