Video Transcript
Alexandra Symeonidi
CFA, Corporate Credit Analyst
Emerging Markets Debt Team
Copper prices have reached all-time high levels in May, supported by investor flows and positioning. Prices have corrected ever since to levels where we feel they better reflect current fundamentals. We have an improved outlook for copper in the second half of the year. Demand from China has been resilient, driven by investments in renewable energy and electric vehicles (EVs). And China demand is more than half of world total demand. In the concentrate markets, concentrate supply has seen a few challenges, with the Panama mine removing about 2% of global supply at the end of last year. In the remainder of the year, low spot treatment charges as well as potential production cuts from Chinese smelters are important tailwinds we look out for in the copper markets.
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