Copper Plate Prices Trend and Forecast

North America

In the final quarter of 2022, the Copper Plate prices showcased a rising trend in the US market, despite rising interest rates and a mixed downstream demand outlook. Copper prices fluctuated due to fears of a global recession as inflation in North America reached double digits in Q4. The supply outlook remained bleak in October, as lower prices were insufficient to spur new manufacturing investment. According to buyers, copper prices rose in mid-Q4 alongside global stock markets as investors believed that central banks would slow the pace of interest rate rises, and the dollar fell, making dollar-priced commodities less expensive for buyers using other currencies. In the absence of any changes in the base metals that indicated a continuation of sideways movement, the copper plate market remained uncertain amid global conflicts and the US midterm elections. Buyers reported that the physical trade had been extremely quiet and would continue to be so until the end of the year. As a result, domestic buyers chose to adopt a conservative approach. Thus, the Copper Plate (C 11000) discussions for Ex Alabama (USA) settled at USD 12383/MT.

Asia Pacific

Copper Plate prices climbed in an upward direction in the Chinese market in the fourth quarter of 2022, despite easing current macroeconomic pressures, with solid support from both the supply and demand sides. Copper concentrate supply in China increased insufficiently in October, and downstream enterprises feared higher prices, limiting the rise in copper prices. The possibility that the LME would ban Russian metals boosted copper prices. The epidemic reduced the operating rates in both North and South China. Consumers were becoming incompetent to support rising prices, and the supply-demand gap widened in mid-Q4. The new production capacity was put into service, but the supply pressure delivery rate was slower due to maintenance and equipment transformation disruptions. After China's pandemic control measures were relaxed at the end of the fourth quarter, market participants became increasingly concerned about the demand outlook. Imported and domestic copper arrivals were limited, and downstream firms increased their purchases in December. The New Year was approaching, and an increase in the number of COVID-19-infected patients had curtailed downstream companies' operating rates in half, suppressing demand. As a result, the Ex Qingdao (China) Copper Plate (C 12000) prices are fixed at USD 7733/MT.

Europe

In the European market, Copper Plate prices increased in the fourth quarter of 2022, and the currency strengthened amidst hawkish comments from US Federal Reserve officials. Despite production difficulties in mid-Q4, the threatened supply situation was not reflected in Copper Plate prices. The supply outlook remained bleak because the low prices did not sufficiently stimulate new production. With the exception of a few large mines in Chile and Peru, the market experienced little expansion. Copper Plate prices were expected to be volatile if Western nations or the London Metal Exchange imposed restrictions on Russian-produced metal. However, the LME did not impose a ban on Russian-origin products. According to market participants, a stronger dollar increased the cost of the greenback-priced metal for buyers holding other currencies. Furthermore, global copper stocks fell to record lows, with current inventories only enough to meet global demand for a few days and shortage risks that did not reflect the physical market's tightness. A series of planned and unplanned smelter shutdowns in South America and Europe have exacerbated the impact of increased supply on treatment charges this year. Thus, Copper Plate (CW008A-1 mm) prices for Ex Drolshagen settled at USD 12653/MT.

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