The world market for red metal has a nice view. The price of copper is driving producers crazy. On February 22, it reached its highest level since 2011, an « all-time record » of $9,000 per ton. As a result of this new motivation, major African producers such as the DRC and Zambia are looking forward to a memorable race in 2021. This conjuncture opens up great opportunities for the countries’ economies.
An arm wrestling of the leaders of copper production in Africa
In 2020, the Democratic Republic of Congo takes the place of the King of red metal production in Africa. The first leader is ranked fourth in the world. The country recorded an exploitation of 1.31 million tons of copper last year. The health crisis has dropped compared to 2019 with 1.41 million tons. As for the second place, Zambia is gaining momentum. The country recorded an increase in production in the same period of comparison. A « historical record » of 882,061 tons compared to 796,430 tons.
The rally between major African producers enters a track for the year 2021. The DRC is undoubtedly keeping its national title. The country will try to increase its copper exploitation. On the side of Zambia, with a beautiful record, the state is optimizing to an upward trend in production capacity. The battle between these two nations is creating an opportunity to gain more mining revenue.
An opportunistic market for copper
The copper market is in a state of supply and demand imbalance. A « symbolic bar » of $90,000 per ton, why not reach $100,000 ?
The red metal is one of the raw materials that has been growing strongly since January 2021. The global demand for copper is picking up speed again on the world market. China, the world’s largest consumer, is rebounding manufacturing activities. The appetite of the big predator is boosting the copper market. As for supply, overbuying is rising in great tension. These factors focus a great opportunity in the world market with a good price.
In terms of competition, the world’s leading producer « Le Chili » estimates a good copper production in 2021.
Ny Fenitra S.M
Crédit Photo : © Open Ressources