The copper price rose by 34% in January-June 2024, then lost 22% by August. Sentiment rose in September following the Federal Reserve’s 50-basis-point rate cut and Beijing’s stimulus rhetoric, but China’s package disappointed and the copper price suffered amid a US dollar rally. It fell further following the US election.
Supply is plentiful; Russia’s Nornnickel plans a 500,000-tonne-per-year copper smelter in China, with concentrate shipped from Russia.
Investment interest remains high; Japan’s Sumitomo Metal Mining will acquire a 30% share in Rio Tinto’s Winu mine in Western Australia.
Supply issues will persist; for example, Zambian mines have been affected by the instability of the Southern African electricity grid.
President Biden’s visit to Angola highlights the importance of the Lobito corridor as a conduit for copper exports to the Atlantic coast.
