Citigroup, Bank of America See Copper Surplus in 2023, But Copper Shortage In the Long Run Will Be Stubborn

Recent disruptions to mineral supply in Panama, Chile and Peru have "taken a backseat," said Michael Cuoco, director of hedge fund sales for metals and commodities at StoneX Group.

A number of new large mining projects have also come on stream recently, and analysts at Bank of America and Citigroup expect a slight copper surplus this year.

But copper supply will be still in shortages in the long term.

BloombergNEF predicts that demand for copper will grow by 53% by 2040, but ore supply will only increase by 16%.

The latest report released by the World Bureau of Metal Statistics (WBMS) showed that in March 2023, the global copper cathode output stood at 2.1 million mt, and consumption was 2.17 million mt. The supply shortage stood at 74,400 mt.

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