The chairman of Chinese metals trader Maike Group said on Wednesday that copper prices would surge to a record high in the next 12 months due to strong demand driven by clean energy in China and years of underinvestment in global mine supply, foreign media reported.
The benchmark price of copper, widely used in power and construction, hit a nine-and-a-half-year high of $9,617 a tonne on the London Metal Exchange on February 25, not far from the all-time peak of $10,190 set in 2011, partly on optimism about the coronavirus-related fiscal stimulus.
Since then, the copper price has dropped from around $8900, but the 1990 s Maike He Jinbi think (Maike), as the world's biggest consumer, construction metal intensive renewable energy and electric vehicle infrastructure, copper and other base metals in the future there will be a serious shortage of supply, and will be subject to the impact of capital inflows.
"Copper prices will hit record highs in the coming year," he said in a written response to questions from Reuters.
"The market will come to accept it because there will also be copper shortages in Europe and the US as the global consumer market recovers," he explained, adding that global investment in mineral resources "has been severely underdeveloped over the past five years".
Micco's boss is submitting a proposal to this year's National People's Congress calling for better co-ordination of China's strategic metal stockpiles.
"Don't focus too much on market prices.
When to reserve, what to reserve and how to reserve -- these are all issues that the relevant departments of the country should consider."
PUDA copper ore packaging machine:
