CESCE, Country Risk
The price of copper in the New York market is, at the close of these lines, above $11.000 per ton, a new record. In year-on-year terms, the metal has appreciated more than 25%.
![[Img # 57442]](https://empresaexterior.com/upload/images/05_2024/9769_cobre.jpg)
The increase in price is explained by the supply deficit in the market, due to the cut in supply forecasts by mining companies and, above all, by the rapid increase in demand linked to decarbonization (intervened, among others, in the production of electric vehicles and transmission networks). Added to the imbalance in supply is the increase in the inflow of investment funds, attracted by long-term expectations.
Some analysts suggest that the copper market is out of control. According to the data from the historical series, the difference in the price of the metal on the stock exchanges London and New York It has traditionally been below $100 per ton.
However, in recent days the differential has exceeded $1.000, something unprecedented until now. This disproportionate imbalance is causing a displacement of both capital and physical shipments to the US market, an unusual behavior that is feeding back the upward movement of the price. In this scenario, some forecasts do not rule out that the price of copper will exceed $13.000 per ton in the coming months.
Source: CESCE
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