Global copper short-term outlook January 2023

As we enter 2023, the factors that have influenced copper prices have not gone away. Indeed, the challenges and uncertainties facing the global economy and the copper market specifically remain in place and suggest another year of volatility. Prices of copper and other commodities through January have raced ahead, underpinned by a shift in sentiment driven by expectations of a rapid recovery in economic activity and copper demand following China’s rapid change in stance on zero-Covid. There is also cautious optimism for improving demand in the rest of the world and especially Europe as the latest macro-economic indicators suggest that the continent managed to avoid slipping into recession in Q4. Meanwhile, ongoing supply disruptions and low and declining inventories will provide price support, despite our expectation of a surplus for the year.