
AXMIN Inc (TSXV: AXM)
AXMIN Inc. (TSXV:AXM) is a Canadian-based exploration and development company with a strong focus on central and West Africa.
On Tuesday, December copper traded in Chicago at $4.36 per pound ($9,610 per metric ton). At the end of September, after a series of major monetary measures were announced in Beijing to stimulate the slowing economy, particularly in the troubled real estate sector, copper prices easily broke through $10,000 per ton.
Next week, the highly anticipated meeting of the Standing Committee of the National People’s Congress (China’s top legislative body), scheduled for November 4 to 8, could be another pivotal moment for copper prices.
The copper market hopes to gain more details regarding the scale and nature of Beijing’s stimulus measures. However, Benchmark Mineral Intelligence noted in a report that it remains to be seen how detailed Chinese policymakers will be: “If the meeting fails to further clarify the scale of fiscal stimulus, we expect copper prices to come under pressure again. We note that since China’s stimulus announcement at the end of September, copper prices have been significantly higher than their implied relationship with the dollar index. If Chinese authorities act according to market expectations, we could see a substantial shift in copper prices. Conversely, if the market loses confidence in China’s stimulus measures and believes the policies are insufficient or superficial, our analysis indicates that copper prices could drop by nearly $1,000 per ton.”
In terms of supply, the global copper market is facing challenges, particularly with production disruptions in key regions. A significant event impacting supply is the fire at Freeport-McMoRan Inc.’s Manyar smelter in Indonesia, which has delayed the smelter’s commissioning until early 2025. Other production challenges include a decrease in output at several major smelters in Asia, further tightening concentrate supplies.
Looking ahead, experts predict that copper prices will continue to come under pressure due to the current supply-demand balance. Despite facing challenges, the outlook suggests that the copper market will remain cautiously optimistic and experience ongoing volatility.