Copper Prices to Remain at the Current Level with Strong Support

Published: Jan 10, 2022 16:35 (GMT+8)

Source: SMM

Save

The copper prices edged lower and moved between 69,000-70,500 yuan/mt last week.

SHANGHAI, Jan 10 (SMM) – The copper prices edged lower and moved between 69,000-70,500 yuan/mt last week. The Federal Reserve's meeting minutes in December 2021 indicated that it may start to scale back its balance sheet after the first interest rate hike, which will be earlier and faster than in history. This statement significantly exceeded market’s expectations and triggered sharp fluctuations in asset prices. However, the assets tend to be impacted in a short term as the market logic may return to a strong economic growth period after quickly digesting the hawkish signal of the Federal Reserve.

The market still needs to pay attention to the US non-farm payrolls as well as the domestic and overseas CPI and PPI before judging the domestic and overseas policy trends. China will maintain relatively loose policies before the Chinese New Year to ensure the steady operation of the overall economy, and the scissors difference between PPI and CPI is expected to narrow before CNY. The domestic macro may continue to improve, which will stabilise the copper prices.

According to SMM statistics, the domestic copper cathode output in December far exceeded market expectations and stood at 870,300 mt, a month-on-month increase of 5.38% and a year-on-year increase of 0.97%, the highest in H2 2021, mainly driven by the ending of maintenance at smelters at the year-end, the rapid recovery of some smelters from the industrial accidents as well as the year-end busy production.

On the raw material side, the shortage of copper anode supply has been gradually alleviated. With the slight improvement of the shipping issues at the ports of South Africa, the import of copper anode basically returned to normal in November. Only a small number of smelters in coastal provinces underwent a slight shortage of blister copper and have not yet reached full production. Meanwhile, domestic social inventories have declined further on the month, and the high apparent consumption signifies that the domestic consumption is still resilient. As such, the copper prices will have solid supported at 69,000 yuan/mt.

copper prices

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

KGHM and South32 launch US$725m Sierra Gorda expansion, lifting copper capacity 26%

KGHM and South32 have broken ground on a fourth grinding line at the Sierra Gorda copper-molybdenum mine in Chile's Atacama region. The US$725 million expansion runs for three years from January 2027, with completion by late 2029 and full output in H2 2030. Ore processing capacity rises 26%, from 131,000 tonnes per day to 165,000 tpd. Annual copper output is projected to climb from 165,000 tonnes in 2025 to 195,000 tonnes, with 6,000 tonnes of molybdenum, 58,000 ounces of gold and 1.7 million ounces of silver as by-products. The project creates over 900 direct jobs and is funded from operating cash flow and debt. Unit operating costs are expected to fall about 10%.

6 hours ago

7 hours ago

Emerita Extends Final Review of Iberian Belt West PFS, Release Expected in Coming Weeks

Emerita Resources has provided an update on the Preliminary Feasibility Study (PFS) for its Iberian Belt West polymetallic project in Spain, saying the study is well advanced but remains under final technical review. The company said the review process has been expanded to include additional technical and quality-assurance oversight before publication. As a result, Emerita now expects the PFS to be released in the coming weeks rather than within the previously indicated timeframe. Iberian Belt West hosts copper, zinc, lead, gold and silver mineralization and is one of Emerita’s principal development-stage assets in Spain. The PFS is expected to provide updated detail on the proposed mine plan, processing configuration, capital requirements, operating costs and project economics. Emerita said the additional review work is intended to ensure consistency and completeness across the technical disciplines contributing to the study before it is finalized. The company did not announce a revised specific publication date, and no new production, capital or economic figures were disclosed in the latest update. The extended review delays the next major technical milestone for Iberian Belt West, but the company continues to indicate that the PFS is nearing completion. For the copper market, the significance of the study will depend on the production profile and project economics ultimately disclosed, particularly the contribution of copper relative to the project’s other payable metals. Attention will therefore remain on the timing of the PFS release and whether the final study materially changes the project’s development outlook.

7 hours ago

Cascadia Intersects 75.55 m at 1.19% Cu at Carmacks Copper-Gold Project

Cascadia Minerals has reported additional drill results from its 2026 exploration programme at the Carmacks copper-gold project in Yukon, Canada, with new step-out drilling extending mineralization at Zone 2000S beyond the boundaries of the existing Mineral Resource. Drill hole CD-26-058 returned 75.55 metres grading 1.19% copper, 0.97 g/t gold, 10.4 g/t silver and 335 ppm molybdenum, equivalent to 2.18% copper-equivalent. The interval included 48.66 metres grading 1.61% copper, 1.39 g/t gold, 15.1 g/t silver and 475 ppm molybdenum, equivalent to 3.03% CuEq. Within the same hole, a higher-grade interval of 14.50 metres returned 2.30% copper, 2.68 g/t gold, 29.5 g/t silver and 1,015 ppm molybdenum, equivalent to 5.08% CuEq. A second hole, CD-26-059, intersected 93.99 metres grading 0.96% copper, 0.70 g/t gold, 4.6 g/t silver and 919 ppm molybdenum, equivalent to 1.94% CuEq. This included 63.97 metres at 1.26% copper, 0.96 g/t gold, 6.3 g/t silver and 1,049 ppm molybdenum, equivalent to 2.52% CuEq. Cascadia said the latest results continue to expand mineralization at Zone 2000S beyond the limits of the current Mineral Resource and highlight the higher-grade nature of the extension. The reported drill intervals represent drilled thicknesses, with true widths estimated at approximately 60–70%. The latest step-out results indicate that copper-gold mineralization at Zone 2000S extends beyond the boundaries of the current Carmacks Mineral Resource. The broad intervals and higher-grade internal zones could support future resource expansion if additional drilling confirms continuity. However, the new intersections have not yet been incorporated into an updated Mineral Resource Estimate, meaning their ultimate impact on project scale and mine planning remains to be determined.

7 hours ago