The copper market should fare better in 2024. According to a report published in mid-January by the research firm BMI (a subsidiary of Fitch Solutions), the price per tonne of copper is set to rise slightly in 2024.
In 2024, a tonne of copper should trade at an average price of 8,800 dollars (over 5.3 million FCFA), according to BMI. This forecast represents a slight increase on 2023, when the average price was 8,523 dollars/t (over 5.1 million FCFA), compared with 8,788 dollars (over 5.2 million FCFA) in 2022.
According to Mining Weekly, this slight increase can be explained by a number of factors, including a weaker dollar and supply constraints. On the latter point, the company cites problems in Panama, which is likely to see a drop in production this year. The Panamanian authorities have decided to suddenly close the Cobre Panama mine, which accounts for 1.5% of the world’s copper production and nearly half of First Quantum’s output.
Pending the materialisation of this slight rise, copper is trading at around 8,400 dollars (over 5 million FCFA) a tonne in the first few days of January. However, the long-term outlook for the market remains solid, with demand expected to grow as global growth accelerates.
Copper is an important resource for the energy transition. It is used in every structure or appliance that uses electricity. In Africa, the DRC and Zambia are the 2 largest copper producers, in addition to Botswana, South Africa, Morocco and Eritrea.
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