TELF AG Explores the Copper Market Surplus and its Impact on Base Metals and Battery Materials

TELF AG, an international physical commodities trader, released its latest report going into the base metals and battery materials market.

LUGANO, TICINO, SWITZERLAND, July 27, 2023/EINPresswire.com/ — TELF AG, a leading international physical commodities trader, released its latest report going into the intricacies of the base metals and battery materials market, with a special focus on the current state of the global copper market. The report, published on July 26, 2023, sheds light on the surplus observed in the copper market during the initial four months of the year, as reported by the International Copper Study Group (ICSG) in their June 2023 Copper Bulletin.

TELF AG states that the base metals and battery materials market has been subject to fluctuations, and copper, known as “Dr. Copper” for its ability to predict economic trends, has experienced a decline of 2.1% in its three-month price as of July 2023. This drop may reflect a decrease in investor confidence and demand for the metal, which can be partly attributed to the surplus observed in the global refined copper market during the first four months of the year.

According to the ICSG’s June 2023 Copper Bulletin, global copper stocks in LME-registered warehouses decreased significantly from 69,700 tonnes on July 3 to 59,175 tonnes on July 17, marking a 15% decline. However, TELF AG’s report highlights that this reduction in stocks did not offset the substantial surplus of 384,000 tonnes of refined copper observed during the first four months of 2023. This surplus starkly contrasts with the corresponding period last year, which recorded a deficit of 43,000 tonnes.

TELF AG discusses that the surplus of 384,000 tonnes points to an excess supply of refined copper in the market compared to the demand during the initial months of 2023. This surplus could be influenced by weaker demand for refined copper in the physical market, possibly stemming from a slowdown in industrial production, global economic uncertainties, and changes in consumer behavior amid the ongoing pandemic recovery.

As per TELF AG’s report, the surplus in the copper market may have potential implications for battery materials. Copper is a vital component in the manufacturing of batteries, especially lithium-ion batteries used in electric vehicles (EVs) and renewable energy storage systems. The downward pressure on copper prices due to the surplus could influence battery material costs, though the extent of this impact depends on various factors, including the scale of copper usage in battery production and the overall supply-demand dynamics of battery materials.

To navigate these challenges successfully, TELF AG advises industry stakeholders to closely monitor developments within the global economy, industrial sectors, and policies related to sustainable energy adoption. As the world moves towards cleaner energy sources and governments implement ambitious climate goals, the demand for copper and other base metals may experience fluctuations.

In conclusion, the base metals and battery materials market, with copper playing a prominent role, has experienced fluctuations in prices despite reduced stocks. The surplus of refined copper in the market during the first four months of 2023, as reported by the ICSG, highlights the importance of carefully monitoring supply-demand dynamics. To harness the full potential of base metals and battery materials while contributing to a sustainable and energy-efficient future, industry stakeholders must remain vigilant and adaptable to the ever-changing economic landscape and evolving consumer preferences.

To read the full article from TELF AG on the Copper Market Surplus, please visit: https://telf.ch/telf-ag-global-copper-market-status-july-26-2023/

For more information about TELF AG and its wide range of media content, visit: https://telf.ch/media/

For more information about the International Copper Study Group (ICSG), visit: https://icsg.org/

About TELF AG:

TELF AG is a full-service international physical commodities trader with 30 years of experience in the industry. Headquartered in Lugano, Switzerland, the company operates globally, providing solutions for commodities producers worldwide. TELF AG’s customer-focused approach allows for tailor-made solutions, facilitating long-term partnerships with producers while maintaining operational excellence and reliability.

Rick De Oliveira
TELF AG
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