London Metal Exchange copper stocks hit their lowest level since 1974 on Oct 15 as a sharp escalation in global supply tensions sent copper spreads soaring, pushing prices to their biggest weekly gain since 2016 (9 per cent) and back above $10,000 a tonne.
Metals in Europe warehouse orders after a surge in LME warehouse tracking existing copper stocks tumbled 89% this month, on Friday the LME warehouse free supply of copper 14150 tons, and industry consumption of every year is about 25 million tons, mainly exchange and private warehouse inventory are falling fast, phase LME copper price difference has entered the historic premiums, Recent contracts have traded at record premiums.
Falling global copper inventories and strong demand contrast sharply with concerns about the macroeconomic outlook and the risk that stagflation and power shortages could derail the strong global growth trajectory.
Copper stocks on the spot market are now falling fast, down almost 40 per cent in the past four months. Global copper inventories are likely to reach record lows by year-end and are expected to run out in the second quarter of 2022 if prices remain low. The decline in inventories, coupled with the need for futures contracts to be delivered, will further reduce copper supply, which will eventually lead to higher prices.
The shortage of electricity, the decrease of scrap supply in the second half of the year, and the multi-quarter stagnation of copper mining will affect the spot supply of copper. It said it expects a “significant supply-demand imbalance” in the copper market and raised its year-end copper price forecast to $10,500 a tonne.
Affected by this, coupled with the surge in PVC prices, the price of power cord cables began to rise in a new round. At the same time, due to the power shortage, the production time of enterprises is shortened, and the delivery time of orders is prolonged, thus affecting the stability of the global supply chain.
Post time: Oct-20-2021