Copper Rod Prices Show Bullish Trend in the US at the Commencement of June 2023

At the start of June 2023, Copper Rod prices showed a bullish trend in the US market as the US debt crisis deal temporarily improved domestic and international trade. The downstream electric vehicles industry has increased the demand for Copper Rod. In addition, the limited supply of feedstock Copper from Chile has also impacted the spot Copper Rod market.

The Copper Rod inventories in the US market are decreasing as the supply from Chile, a major exporter of Copper, has been declining as they are curtailing their Copper production activity from Q2 2022. As per market players, due to the increasing pollution concern, the Chilean government has completely shut down Copper production in the Fundición Ventanas smelter, Chile's world's largest copper-producing company. However, several players claim that the rising protest from the residents owing to the rising health-related issues provoked the regional authorities to shut down the Ventanas smelter.

The US debt crisis deal has temporarily increased the Copper Rod demand by extending the debt crisis for two more years. Congress must race to finalize the deal to avoid the arrival of the so-called X-DATE when the US government will have no money to pay its bill.

The downstream automobile sector is showing a bullish trend for Copper Rod as the electric vehicle is showing a rapid increase in demand in the US spot market. The US government plans to increase the swift sales of electric vehicles to promote environmental policies. A similar trend is shown in the following energy transition sector with an increased adaptation of renewable energy for green power transmission has increased Copper Rod demand to promote pollution-free energy production. Moreover, the Chips and Science Act signed by the US government in the third quarter of 2022 has increased the demand for Copper Rods to a significant level in the downstream semiconductor industries in the US local market.

According to ChemAnalyst, the price of Copper Rods will showcase a stagnancy in the upcoming months as the US deal is at an edge. It has to be finalized first to save the US economy from drastic conclusions. The downstream sector, such as automobiles and infrastructure, holds the potential to uplift the Copper Rod price, but major trade of these sectors would still be affected by the upcoming US economic conditions. Feedstock supply might increase in Chile as Ceibo, one of the advanced copper extraction companies, is investing in establishing Copper extraction technology through a novel leaching process that can economically increase the production of Copper and its byproducts.