📌China's reopening might further support the red metal's price

📈Copper demand was negatively affected by the global economic downturn in 2022. However, Beijing's recent cancellation of its Zero-Covid policy is likely to bolster demand and, hence, keep prices at current elevated levels; the Cu price is up >20% since mid-2022 and >10% since early December 2022, when China announced the possible easing of Covid-19 restrictions

🏅We note that China remains by far the biggest Cu consumer, with ~55% of global refined Cu consumption

❗️At the same time, copper inventories are close to their lowest level in more than ten years: current stocks are sufficient for only three days of global consumption (vs. the averages of 9 in 2010-20 and 5 in 2021). Hence, the potential demand boost from China might trigger some price squeezes in 2023

📝In our next post, we shall elaborate on the valuation of major Cu producers

#copper
https://metals-wire.com/sector/Copper