According to analysts, the price of copper should continue to fall. This is due to a decline in demand from speculators, as well as a growing supply of this metal on the market. Interest in copper is also dampened by fears of a new outbreak.
While in May copper was traded on global markets for more than $ 10,700 per tonne, now its price is about a tenth lower. There are several factors behind the reduction in the price of one of the key metals for industry and especially the production of electric cars. On the one hand, demand from investors, who bet on the commodity precisely with regard to the expected boom in electromobility, is gradually weakening.
This goes hand in hand with growing concerns about the onset of another wave of the coronavirus epidemic, which could lead to a slowdown in industrial production and thus a decline in demand for copper. And last but not least, the supply on the market is also increasing.
According to more than two dozen analysts polled by Reuters, the average price of copper will fall to $ 9,000 per tonne in the last quarter of this year, which is another eight percent lower than current levels. Even so, copper would cost about a third more than in the same period last year.
