A COPPER deficit of about 10 million tonnes and a prolonged high price cycle is expected in the market by 2030.
About 10 million tonnes of additional copper is required to balance the market by 2030, Global commodities trader Trafigura Chief Executive Jeremy Weir, told the Fastmarkets Copper Seminar.
According to Mining.com, Mr Weir projected a significant supply deficit in the copper market and a prolonged high-price cycle.
“We see a significant deficit, possibly in the region of 10 million tonnes of additional copper is required to balance the market by 2030,” he said.
Mr Weir said the company expected to see a third of the demand growth for copper was probably going to be electric vehicles.
He added that a third in this new electrification in terms of infrastructure spending and a third of emerging markets.
China, he said, would remain a key driver of demand but the de-carbonisation goals of the European Union and the new United States administration meant that a lot more copper would be needed to meet their new infrastructure and electrical grid needs.
“What we expect to see is a third of the demand growth for copper is probably going to be electric vehicles, a third in this new electrification in terms of infrastructure spending and a third of emerging markets,” he said.
“I really think this is a prolonged high-price cycle and we’re going to need these high prices to incentivise new production,” Mr Weir said.
London copper hit a near 10-year highs last week on some near-term supply tightness.