According to foreign media on October 9, Máximo Pacheco, chairman of Chilean state-owned copper producer Codelco, said in an interview that although copper’s long-term prospects continue to improve, investors’ concerns about macroeconomics and geopolitics have weakened copper’s short-term prospects. This is understandable.
Máximo Pacheco said copper's role as a financial asset caused speculators to withdraw as they took a more pessimistic view of the global outlook.
"It's important to remember that copper is not just an industrial metal, but in terms of its depth and scale, it has developed into a very mature market and has become an important financial asset."
"In my opinion, changes in copper prices in the short term have more to do with the economic outlook, perceptions of COVID-19 uncertainty, the war in Ukraine, geopolitics and other factors related to the economy," he added.
Pacheco believes that the supply and demand outlook for copper is very strong in the long term because of its role in the energy transition, including renewable energy and electric vehicles.
“The key question is, where will the copper come from? We still don’t have the answer. "
At the same time, he remains optimistic about China's prospects. Previous concerns about the real estate market have lowered consumption expectations.
Pacheco said China's copper demand will grow by 8%, and he expects this consumption to be maintained against the backdrop of China's commitment to reducing emissions and developing renewable energy and electric vehicles.
He added, "Obviously, a strong Chinese market can be expected."
