Copper markets are expected to remain relatively stable through 2023 as supply- and demand-side dynamics continue to cancel each other out.

On the demand side, a looming recession in major economies such as the United States and, in particular, China (whose economy is currently being upended by a surge of COVID-19 infections), is tempering expectations for copper purchases and putting downward pressure on prices. Fitch expects demand to grow by approximately 2% over the course of the year, but of course, demand will ultimately be determined by the health of the global economy in the year ahead. How healthy will the economy be? Predictions are indicating various degrees of recession, ranging from the relatively tame (Moody’s ‘slowcession’ of stagnant growth) to the grim (Fitch’s ‘90s-style recession’) to the seminal (Nouriel Roubini’s ‘extreme recession’).