Copper Market Faces Mounting Supply Glut as Demand Slumps Outside China

The International Copper Study Group forecasts a large global copper supply surplus of 467,000 metric tons in 2024, revising its previous smaller surplus forecast.

Copper demand outside China is now expected to decline in 2022 and 2023 due to economic weakness, while Chinese demand remains resilient.

Refined copper production growth is accelerating, driven by capacity expansions in China and other countries.

The copper market balance is uncertain for 2023 but likely transitioning to a significant surplus in 2024 as supply growth outpaces demand.

These bearish forecasts are weighing on copper prices, which have fallen below $8,000 per metric ton recently.