Peru | Copper price: challenges and opportunities

Summary

The price of copper has registered a significant downward correction so far this year. However, the medium-term supports, due to greater demand for the development of green infrastructure and vehicle reconversion, remain firm.

Key points

• Key points:
• In the short term, the price of copper will continue to face downward pressure due to: (i) the prospects of lower demand for the metal, in an environment of sensitive economic slowdown, and (ii) a relatively significant increase in supply, between and next year, due to the entry into operation of copper projects on a global scale.
• However, in the medium term, the copper price continues to be supported by strong structural demand as increased climate change concerns are accelerating investment in green infrastructure and vehicle retrofitting.
• In general, beyond temporary short-term corrections, the prospects for the price of copper remain favorable. Countries that export this metal and that have significant reserves, such as Peru, could benefit from more mining investment linked to the development of new copper projects.

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