The recent surge in price of copper has largely been attributed to strengthening of short-term demand outlook from China and also due to the effects of Trump presidency.
However, apart from this, expectations of increase in market deficit in copper towards the end of this decade is also supporting the price of the base metal. Global cutbacks in copper mining is expected to decline the copper production by 6 million tonnes by 2020. Declining grades of copper ores and depletion of copper reserves at the mines across the world are also likely to result in lower production of the metal. The underlying dynamics are expected to support the copper prices to 2020 and even early 2020s, depending on the greenfield projects and other expansion projects planned by the copper majors globally.