Copper update24 Oct 2022 14:26
The global supply of copper is running dangerously low, according to top commodities trading firm Trafigura.
Kostas Bintas, Trafigura's cohead of metals and minerals trading, said at the FT Mining Summit on Thursday that inventories can currently cover 4.9 days of global consumption and could finish the year at 2.9 days. For comparison, copper inventories are typically counted in weeks.
Copper is an essential material that is purposed for use in machinery, smart phones, EV batteries, plumbing, and even wind turbines because of its ability to effectively conduct electricity.
While the collapse of China's property market has weighed on copper demand, the growth of renewable-energy technologies more than makes up for that and will drive supplies lower, Bintas said, noting that the European Union has accelerated its target for doubling solar energy capacity.