Copper prices hit a decade high on Monday; Concerns about strong supply and demand disruptions have raised expectations of a market with a shortage of goods.

The key energy transfer metal traded up 1 percent at $ 9,650 a tonne on the London Metal Exchange on Monday, April 26, compared to last Friday, April 23. $ 9,545 traded.

According to Goldman Sachs, the metal is on the rise in price, reaching $ 15,000 per tonne by 2025; Because it is estimated that demand will grow by nearly 600% by 2030. Analysts believe that the demand will reach 1.22 million tons this year, and this amount will gradually reach 2.56 tons in 2025 and 5.39 tons in 2030.

This increase in projected demand will lead to a shortage of supply and the need for higher prices, which in turn will create the need for new investments.

The supply shortage starts in Chile, the world’s number one exporter. Initially, the potential impact of the coronavirus on production and exports and, at present, the risk of national strikes in the country’s ports.

With more than 8,000 members in 25 port terminals, the Chilean Ports Union had planned a strike on Monday in all terminals to pressure the government to increase funding. The union announced the complete closure of all 25 terminals, which would halt copper exports and affect inventories.

(Power Materials News, April 26, 2021)