Copper prices projected to remain strong till year end, as cost per tonne reaches $10,016, highest in 2 years

Stanbic Bank has projected that copper prices on the international market will remain strong for the remainder of this year on account of growing demand for red metals.

Copper prices on the international market are surging, peaking at US$10,016 per metric tonne by the end of May 2024, the highest in two years, according to the London Metals Exchange (LME).

Speaking during the Bank’s first Economic Briefing for 2024 on Tuesday in Lusaka, Bank’s Head of Sales, Global Markets, Musenge Komeki, said the outlook of Copper prices on the international market are expected to remain bullish.

Komeki attributed the bullish outlook to heightened demand for the red metal, which are required as essential components for the manufacturing of Electric Vehicles (EVs) and battery production.

“Prices of the red metal have skyrocketed in the last six months, boosted by strong demand by global manufacturers led by China, which has continued to maintain its huge imports throughout this year so far,” he said.

According to Mining.com, prices had also benefited as investors start to pivot into commodities as a hedge against renewed inflation fears.

In his remarks, the Zambia Institute for Policy Analysis and Research (ZIPAR) Interim Executive Director, Zali Chikuba, encouraged commercial banks and financial service institutions to increase the uptake of low interest credit to hard-hit businesses.

Chikuba stated that this should be done particularly to those negatively affected by the ongoing drought.

He said: “Unusual times call for unusual measures. What we saw during COVID-19 was the Bank of Zambia (BoZ) created a relief fund where they were supporting some of the banks to meet some of their contingent needs so that they do not get out of business because of that period.”

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