The global mine copper supply gap will reach 4.7 million tons by 2030 and expand to 8.4 million tons by 2035.
Vanessa Davidson, CRU's head of base metals research and strategy, said global copper supply would be sufficient to meet demand until 2025.
Global mine copper production will return to normal levels in 2021, up 2.9 percent, taking into account increased output from new projects this year.
CRU expects global mine copper production growth to remain at about 3 per cent a year between 2021 and 2023.
But as we get closer to 2025, supply will become problematic.
CRU predicts a supply gap in 2025 and a growing gap in 2030 and 2035.
The supply gap will increase to 4.7 million tons in 2030 and as high as 8.4 million tons in 2035.
Based on the projects currently under construction, many will be completed in the next three years, but very few will be completed in 2024.
Copper producers need to develop projects to fill future supply gaps and doing so will be challenging, there are many challenges, such as decarbonisation.
If you think about reducing emissions, that applies to the project itself.
Anyone developing a project today needs to demonstrate a low carbon footprint.
Does this lead to project delays?
Does that mean some projects will be canceled?
Ms Davidson thinks that is also a possibility.
There are also problems with ore grade downgrades, financing and social licensing.
