SMM survey: what kind of metal do you like most in 2022?
Foreign news on December 21, London Metal Exchange (LME) industrial metal prices rose on Tuesday, following the rise in oil prices and stock markets, market participants weighed the impact of the Omicron variant virus on economic growth, investors became slightly optimistic.
17:00 London time (01:00 Beijing time)), LME copper for delivery in three months rose 0.93%, or $87.50, to $9534 a tonne, but was still below last month's highs of $9920 a tonne and May highs of $10747.50 a tonne.
Copper is still up about 20% in 2021, and low inventories and optimistic long-term demand prospects are likely to keep prices high, according to independent analyst Robin Bhar.
"because of low inventories, there is no buffer if there are any supply problems," he said. " He was referring to the potential impact of supply disruptions in Peru and the new Chilean government.
The O'Micron variant is spreading in Europe, the United States and Asia, increasing the risk of taking measures to contain the damage it causes to the economy.
European equities and risky assets rose, the dollar weakened and oil prices rose 3.5 per cent.
LME copper registered warehouse receipts were 80000 tonnes on Tuesday, up from 14150 tonnes in October, but well below recent highs.
Data released last year showed that its copper inventory was 34580 tonnes, the lowest level since 2009, while copper inventories in China's bonded warehouses have fallen sharply.
Chile's mining industry is preparing for stricter environmental regulations. Earlier, President-elect Gabriel Boric promised to oppose a controversial $2.5 billion iron and copper project. The project was approved in August after years of legal wrangling.
(ICSG), an international copper research group, said in its latest monthly report that the global refined copper market had a shortage of 57000 tons in September and a surplus of 56000 tons in August. In the first nine months of this year, there was a supply shortage of 161000 tons, compared with a shortage of 239000 tons in the same period in 2020.
An executive at Pan Pacific Copper (PPC), Japan's largest copper supplier, said on Tuesday that the average price of copper was expected to fall to $8600 a tonne in 2022 from $9300 this year, as additional supply of new mines would ease supply tensions in recent years.
LME said on Tuesday that it would not raise major transaction and settlement fees next year because of the COVID-19 epidemic.
"taking into account market conditions and the global epidemic, the trading and settlement fees of the London Metal Exchange Group will not change."
