The price of copper, known as ‘Doctor Copper’, is melting due to concerns about an economic recession. This is the result of intense austerity measures and the Chinese real estate recession all happening at once. Stock market experts believe that copper prices will rebound in the long term in line with the trend of switching to new and renewable energy. According to Korea Resources Information Service ( KOMIS
) on the 21st, the price of copper traded on the London Metal짱구카지노 주소 Exchange ( LME ) on the 18th ended at $7,947.5 per ton, up $101 (1.29%) from the previous trading day. Even at the beginning of this year, the price of copper exceeded $9,000 per ton. However, it continued to decline due to concerns about a global economic recession and the aftermath of intense austerity measures. On the 5th, it hit the lowest price of the year at $7812.5 per ton. Copper is an essential raw material for various industries such as electricity, electronics, and construction, and is called a leading indicator of the real economy. During economic expansion or recovery, demand increases and prices tend to rise as well. Conversely, during a recession like the current one, prices fall due to slowing demand. Before the 2008 financial crisis, copper prices fell ahead of other economic indicators. Inventory also increased. LME copper inventory was 88,550 tons at the beginning of this year (January 3), but more than doubled to 191,675 tons on the 18th. What is further encouraging the recent price decline is the worsening real estate market in China. The real estate market fell into a recession when the Chinese government introduced a construction and infrastructure stimulus package that fell short of market expectations. Biguiwi is following the default of Hengda Group, a large real estate conglomerate. Jeon Gyu-yeon, a researcher at Hana Securities, said, “In China, a major consumer of copper, expectations for an economic rebound are rising as consumption and production indicators are recovering, but external conditions are still uncertain and the real estate market is sluggish,” adding, “This is acting as a downward pressure on copper demand.” did.
However, experts do not expect the decline in copper prices to continue. This is because copper is used as an essential element in the long-term decarbonized energy transition era. This is because copper is used not only in electric vehicles ( EVs ) but also in battery storage devices, wind power, solar tubes, and power transmission and distribution. In China, copper demand in the construction sector is decreasing, but demand in new and renewable infrastructure sectors such as solar and wind power is still solid. At ‘LME
Week 2023′ , the world’s largest industrial metals event, the prevailing opinion was that copper prices would rise starting next year. As a result of on-site voting by stock market experts who participated in the event, the industrial metals most likely to rise next year were copper 55.2%, tin 21.8%, nickel 8%, lead/zinc 6.9%, aluminum 4.6%, and steel 3.4%. Hwang Byeong-jin , head of FICC research at NH Investment & Securities , said, “In the short term, there is downward pressure on prices as consumers postpone purchases due to the burden of high interest rates, but the upward trend will resume after bottoming out in the first quarter of next year ($7,500 per ton).” “Investment aimed at recapturing $10,000 per ton is valid,” he said. In addition, long-term supply shortages are also contributing to the rise in copper prices. The facility investment ( CAPEX ) of major copper mining companies is not increasing, and it is difficult to increase the copper smelting operation rate due to China’s environmental regulations. According to Korea Investment & Securities, the facility investment of nine major mining companies, including Codelco and Rio Tinto, decreased from $2.13 billion in 2013 to $1.94 billion last year. Choi Moon-seon, a researcher at Korea Investment & Securities, said, “The supply shortage of copper will continue until 2027, and the first copper price supercycle in 20 years will occur.” He added, “ LS , which has copper smelting and processing companies as its core subsidiaries, will increase its spending on manufacturing and construction in the United States . “We should invest in companies such as LS ELECTRIC , which is expected to benefit from investment in the power grid, and Poongsan, which is expected to see long-term earnings growth due to rising copper prices,” he said.
