Global Copper Supplies Can Only Cover 5 Days Of Demand

Copper supply is dangerously low, according to top global commodities trader Trafigura and claimed current inventories can only cover 4.9 days of demand, Brian Evans reported for Business Insider.

Photo Insert: Copper is currently trading at just below $7,400 per ton, still 30% lower than the March peak of $10,000 per ton.

That could shrink even further to just 2.7 days by the end of this year, said Trafigura chief Kostas Bintas. Copper inventories are typically counted in weeks.

"While there is so much attention being paid to the weakness in the real estate sector in China, quietly, the demand for infrastructure, electric vehicle-related copper demand, more than makes up for it," he said, according to the Financial Times.

"It actually not only cancels completely the real estate weakness, but also adds to their consumption growth increase."

The shrinking inventory increases the risk of an unanticipated spike in prices as traders rush to ensure supply needs are met. Copper is currently trading at just below $7,400 per ton, still 30% lower than the March peak of $10,000 per ton.

Bintas said prices have slipped due to recession fears but sees copper recovering quickly after those fears ease. However, he stopped short of reiterating his prediction last year that copper would hit $15,000 a ton.

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