Trafigura CEO expects 10 million tons of copper supply shortage by 2030

Jeremy Weir, chief executive of Trafigura, a global commodity trader, said at the Fastmarkets copper seminar that the company believes there is a serious shortage of supply in the copper market and the high price cycle will be prolonged.

He said: "We expect that there will be a severe shortage of copper supply. By 2030, we may still need 10 million tons of copper to balance the market."

Weir said that China will remain the main driver of demand, but the decarbonization targets of the new EU and US governments mean that more copper is needed to meet its new infrastructure and grid needs.

Due to the recent tight supply, London copper prices hit a nearly 10-year high this week.

He said: "We expect that one-third of copper demand growth may be electric vehicles, one-third is new electrification in infrastructure spending, and one-third is emerging markets."

"I really think this is a long-term cycle of high prices. We need these high prices to stimulate new production."