Copper prices soar to an 11-month high as Chinese smelters cut production, sparking potential long-term investment opportunities.
Copper prices skyrocketed to over $4.1 per pound, hitting their highest point in more than eleven months. This surge followed an agreement among leading Chinese copper smelters to scale back production at facilities that were no longer profitable due to a lack of raw materials. The decision was prompted by a steep drop in copper concentrate prices, which had reached their lowest levels in a decade, putting a strain on smelters’ profitability.
While Copper prices can be subject to significant swings due to changing macroeconomic and geopolitical factors, its indispensable role across various applications and its significance in the energy transition cannot be overlooked. According to forecasts by BloombergNEF (June 2023), copper consumption is expected to surge to 43 million metric tonnes by 2050, up from 26 million in 2022.
London-listed company KEFI Gold and Copper plc (LON:KEFI) is an exploration and development company focused on gold and copper deposits in the highly prospective Arabian-Nubian Shield. The Company operates in Ethiopia and Saudi Arabia with projects including Tulu Kapi project, Jibal Qutman EL and Hawiah.
