On Wednesday, copper prices soared due to weak US core inflation data and supply disruptions in the copper mines in Peru. The red metal’s futures for March delivery were trading higher by 0.42% to $3.86 per metric ton on December 14. This surge came following the report on lower consumer core inflation data in November at 6.10% from 6.30% in October.
Accordingly, the data fuel the expectations that the Fed will ease its aggressive interest rate hikes. Furthermore, an analyst projected that the price range of copper might hit around $8,300.00 to $8,600.00 a ton. Moreover, the disturbance in Peru due to ongoing protests was the other factor that affected the copper price.
The outcry resulted in roadblocks and transportation shutdowns that hindered the nation’s logistics. Accordingly, this event has started to disrupt the operations in the copper mines. In particular, roads in the northern, eastern, and southern regions remain blocked.
One of the most affected was the supply and products from the Cerro Verde mine. Consequently, similar facilities in other regions are experiencing the same setbacks. Furthermore, there were some concerns that the political unrest could spark further tensions in the mining areas.
Meanwhile, the uncertainty in China’s restriction was limiting the copper price.
Wall Street Predicts High Copper Prices Next Year
In recent weeks, some analysts projected a copper price rebound in 2023 despite the uncertain global outlook.
Wall Street stated that the forecast was the result of its observation of high demand due to long-term energy transition and short-term tightness in supply.
In particular, record high prices were recorded in March despite the market crises in 2022. Moreover, China might ease its Covid-19 policy, resulting in a robust market. In addition, experts noted that demand for copper remained strong despite the demand concerns in Beijing. Due to this, some analysts hiked their copper price forecast to $12,000.00 per ton for next
