From Reuters via Mining.com, November 28:
Reduced supply from major copper producers Panama and Peru may flip the global copper market into a deficit from surplus in 2024 or at least tighten oversupply if the disruptions are not resolved in coming months, analysts said on Tuesday.
Panama’s top court on Tuesday ruled that Canadian miner First Quantum’s contract to operate the Cobre Panama mine there is unconstitutional, while a union representing half of the workers at Peru’s Las Bambas mine went on strike.
If the Cobre Panama mine were to be permanently shut, then the market could easily move into deficit in 2024, said Macquarie analyst Alice Fox.
However, if it is out of operation only until Panama’s May 2024 presidential election, it would mean a loss of around 40,000 tons of copper this year and 160,000 tons next year, according to her estimate.
“This could result in a small deficit this year but the market should be able to absorb the loss next year and remain in surplus, albeit a smaller one. This could provide some support to prices next year,” she added....
....MUCH MORE
Earlier today:
"Panama president directs First Quantum to shut copper mine after court ruling"
