In April, the LME Copper 3m price was $8,822/MT, down 14% year-on-year (y-o-y). At the same time, other base metal prices fell by an average of 28% y-o-y. The main reason for this price divergence is the high demand for copper, primarily from China, which is actively increasing consumption.
Market demand for copper was weak in April, primarily due to the weak performance of the Chinese economy, where the construction industry is not yet showing signs of a recovery. Nevertheless, many market participants agree that the global market will need large quantities of copper in the long term. Copper is integral to economic activity and modern technological society. In addition, infrastructure developments in major economies and the global trend towards clean energy and electric vehicles will likely continue to support long-term demand for copper. China will continue to play a special role in copper consumption growth, as the country is actively ramping up production of high-tech products and increasing copper consumption. Therefore, despite a challenging global economic outlook, manufacturing activity is expected to continue to grow in most key copper-using industries due to market experts predictions.
International trade statistics from the General Customs Administration of China confirm strong demand from China, as imports of refined copper alloys and unwrought increased by 5.7% to 4.2 million tonnes in 2022. China consumes about 60% of the world's copper, so the increase in the country's purchasing activity will continue to have a huge impact on the balance of the global metal market and, as a consequence, metal prices.