Customer Logins

Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Sign in to the product or service center of your choice.

Customer Logins

Copper Price Forecast and Market Predictions

We are holding to our view of higher copper prices by year-end. The market's mood has been sour since April because of worsening US-China trade relations and related softness in global manufacturing. Our market-balance calculations, however, show a market deficit in both 2019 and 2020. Inventory supports this fundamentally tight picture of the market — it reads low relative to consumption (even at the weak rates of growth now projected) and has been trending lower for the past two years.  This view of the market points prices higher and suggests a potential upside surprise should sentiment change. An added risk that has emerged in just the past month is the unrest in Chile, which may threaten production and exports in the world’s largest producer.

Our LME price forecast has prices averaging $5,875/metric ton in the fourth quarter, rising toward $6,400/metric ton in the first half of 2020. We therefore regard prices below $6,000 as a good buying opportunity. Although prices have moved lower than expected, we would seize on current prices to lock in forward buys.

Watch John Anton, Associate Director, Pricing & Purchasing, talk about the realities of the copper market production, inventory, and price.



On the downside, we now place an absolute bottom near $4,900 per metric ton, a cost floor that a global recession would expose should consumption actually contract.  To learn more, visit Commodity Coverage – Metals

Disruptions, protest, taxes impact foreign mining firms
Download now
Follow copper pricing across the globe with Commodity Price Watch
Download copper extract

Copper Supply and Demand Forecast Highlights

  • Mine capacity is projected to increase by less than 2.0% in 2019, with mine production growth even weaker; it is now projected to be essentially flat.  An added caution for the near term is mine production in Africa’s "Copper Belt." 
  • Global consumption in 2018 grew 2.6% December to December, copper's best performance since 2014. Data over the first six months of 2019, however, show a change in conditions, with year-over-year growth to June up only 1.0%.
  • The purchasing managers' index (PMI) new orders data for copper-consuming industries to September remain soft, with weakness seen in Europe. 
  • China remains the key to the outlook. Targeted stimulus has not offset the negative effects of the trade war to-date. Recent data, however, hints at an improvement. Any clarity on trade could release pent-up demand, trigger inventory restocking, and boost apparent consumption, quickly changing conditions in the market.
  • Long term, we project copper consumption growth to average 2.2%, more than half a percentage point lower than consumption has grown annually during the past 25 years.

Experts

Mark Ulmer

The group specializes in monitoring global commodity, wage, output and other related indicators by sector. Their focus spans across ferrous and nonferrous metals, machinery and equipment, electronic components, chemicals, paper, packaging materials, health care and more. He has authored two articles that appeared in the Monthly Labor Review. ​Mr. Ulmer received his Bachelor of Science degree from State University of New York,  Albany, N.Y., U.S. He is a member of the Bureau of Labor Statistics Business Research Advisory Committee (BRAC)​.​

View Profile

Laura Hodges

Ms. Hodges is responsible for the management and operations of the Pricing and Purchasing Research team. Ms. Hodges has managed several projects on global cost analysis, including projects in Asia and South America, where the objective was to recommend the most cost-effective and efficient action in the procurement of key materials and services. She has spoken extensively on the topic of procurement pricing strategies and the global cost environment, including a presentation at the Institute of Supply Management titled, "Has China Lost Its Low-Cost Edge?" She has made presentations on the "Economic Risks to Consider Before Bidding Your Next Contract," and "Understanding and Estimating the Skilled Labor Shortage," at a conference of the Association for the Advancement of Cost Engineering. Ms. Laura Hodges holds a Bachelor of Arts in Economics from the George Washington University, U.S., and a Master of Arts in Health and Labor Economics from Duke University, U.S. She also earned an MBA from Rutgers University, Beijing, China.

View Profile

John Anton

Mr. Anton has expertise in the ferrous metals industry, he is responsible for evaluating the outlook for steel. He also specializes in forecasting commodities and works closely with the Automotive, Construction, Energy and Economics teams at IHS Markit. Steel demand is linked to outlooks from these key sectors. In turn, the profitability of these sectors can rise or fall depending on the price and availability of steel.Prior to joining IHS Markit, now IHS Markit, in 1995, he was in the private practice of law as well as an economist and statistician for the United States Department of Labor in the Bureau of Labor Statistics (BLS). Mr. John Anton received a Bachelor of Science in Economics from Florida State University, US, and a Juris Doctor from the Marshall-Wythe School of Law at the College of William and Mary, US.

View Profile

John Mothersole

As director of research, Mr. Mothersole sets and executes research priorities to identify potential supply chain risks and opportunities. His other duties include providing inflation analysis for the US Economic Forecasting Service, World Industry Service and the metal price forecasts within the Global Link Model at IHS Markit. He is directly responsible for nonferrous metal forecasts. He has more than 30 years of experience in price analysis and price forecasting. A member of the National Association of Business Economists (NABE), Mr. Mothersole holds a Bachelor of Arts and Master of Arts in Economics, both from the University of Maryland, US.

View Profile

Events

IHS Markit Webinar 12 October 2021

Q3 What's New in iLEVEL

Join us for a live session highlighting new featur (...)

IHS Markit Webinar 06 October 2021

All you need to know about the recent IRS For (...)

Join us and KPMG as we provide insight to the curr (...)

IHS Markit Webinar 28 September 2021

Women in Leadership Series with Dr. Sunita Na (...)

Diversity and Inclusion has been a very important (...)

IHS Markit Webinar 30 September 2021

Cybersecurity & ESG: How to leverage cybersec (...)

Webinar Cybersecurity & ESG: How to leverage cyber (...)

IHS Markit Webinar 29 September 2021

Women in Leadership - Kim Evans, Executive Vi (...)

Diversity and Inclusion has been a very important (...)

Follow Economics & Country Risk on Twitter

{}
{"items" : [ {"name":"login","url":"","enabled":false,"desc":"Product Login for existing customers","alt":"Login","large":true,"mobdesc":"Login","mobmsg":"Product Login for existing customers"},{"name":"facts","url":"","enabled":false,"desc":"","alt":"","mobdesc":"PDF","mobmsg":""},{"name":"sales","override":"","number":"[num]","enabled":true,"desc":"Call Sales</br><strong>[num]</strong>","alt":"Call Sales</br>[num]","mobdesc":"Sales","mobmsg":"Call Sales: [num]"}, {"name":"chat","enabled":true,"desc":"Chat Now","mobdesc":"Chat","mobmsg":"Welcome! How can we help you today?"}, {"name":"share","enabled":true,"desc":"<strong>Share</strong>","mobdesc":"Share","options":[ {"name":"facebook","url":"https://www.facebook.com/sharer.php?u=http%3a%2f%2fihsmarkit.com%2fsolutions%2fcopper-price-forecast.html","enabled":true},{"name":"twitter","url":"https://twitter.com/intent/tweet?url=http%3a%2f%2fihsmarkit.com%2fsolutions%2fcopper-price-forecast.html&text=Copper+Price+Forecast+and+Market+Predictions+%7c+IHS+Markit","enabled":true},{"name":"linkedin","url":"https://www.linkedin.com/sharing/share-offsite/?url=http%3a%2f%2fihsmarkit.com%2fsolutions%2fcopper-price-forecast.html","enabled":true},{"name":"email","url":"?subject=Copper Price Forecast and Market Predictions | IHS Markit&body=http%3a%2f%2fihsmarkit.com%2fsolutions%2fcopper-price-forecast.html","enabled":true},{"name":"whatsapp","url":"https://api.whatsapp.com/send?text=Copper+Price+Forecast+and+Market+Predictions+%7c+IHS+Markit http%3a%2f%2fihsmarkit.com%2fsolutions%2fcopper-price-forecast.html","enabled":true}]}, {"name":"rtt","enabled":true,"mobdesc":"Top"} ]}
Filter Sort