Copper prices rose by 1.58% to 883.5 due to increasing demand and tightening supply, raising concerns about potential shortages. The metal’s crucial role in electrification and its use in AI and automation infrastructure has led to optimistic forecasts about its future demand.
Despite soaring prices, China’s continued importation of ore signals sustained demand from manufacturers, further tightening the supply chain. However, the limited availability of material has reduced profits for smelters in China, potentially leading to a 10% output cut this year. The high costs of starting new mines have led major miners to engage in industry consolidation.
China’s current account surplus contracted to USD 39.2 billion in Q1 2024, the smallest surplus since Q1 2020, due to industrial upgrades fostering new trade growth points. Additionally, foreign direct investment posted a deficit of $27.9 billion, while reserve assets expanded by $43.4 billion, reflecting China’s strategic financial management amid shifting global economic landscapes.
