Global Commodities: Supply Risks - Copper at a breaking point; Biden halts LNG export approvals

Speakers:  

Shikha Chaturvedi, Head of Global Natural Gas Research

Gregory Shearer, Head of Base and Precious Metals Research

There are two interesting supply dynamics happening in two very different commodities that are both grabbing a lot of attention in early 2024: copper and natural gas (both dry gas and LNG). In copper, a tightening across the upstream concentrate market is happening much quicker than expected and appears to be lurching towards a breaking point.  The boosted risk of margin-induced production cuts at smelters could lead to a deeper refined copper deficit over the course of this year and continues to boost our conviction in a bullish trajectory for prices. In natural gas we cover some of the recent whipsaw moves in US natural gas prices and whether it is enough to change near-term production estimates out of the US. Additionally, we address today’s announcement by the Biden Administration of a temporary halt in approvals for US LNG export facilities and its potential impact to the global market.

This podcast was recorded on Jan. 26, 2024.

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