-- Copper prices eased slightly to US$5.90 per pound over the past week as the market continues to digest conflicting signals between Middle East tensions and upbeat factory data in China, RBC Capital Markets noted in a note dated May 4.
RBC noted the International Copper Study Group estimated a supply surplus of 276,000 tonnes in February, compared to a surplus of 34,000 tonnes in the previous month. But Chinese inventories have declined since then on what appears to be stronger demand.
On the M&A front, RBC also noted, mining dealmaking is "heating up", hitting $21.6 billion in the first quarter, the strongest start to the year since 2023, as capital flows toward assets that secure reliable supply of critical minerals in stable jurisdictions (citing mining.com).
"With metals prices remaining elevated, we expect consolidation to continue in the sector," RBC said.
Meanwhile, RBC noted earnings season is well underway, with FM, CS, and HBM having reported last week. The bank said cost pressures were in focus with both FM and CS flagging potential for cash cost increases of roughly 10% from higher fuel prices. IVN, LUN, and NEXA report earnings on Wednesday after markets close, it added.
Price: $31.49, Change: $+0.45, Percent Change: +1.45%