Huge Panama Mine Shutdown Threatens Copper’s Surplus (1)

A plan to close a major mine in Panama is threatening to upend the global copper market by whipsawing the industry back into a period of tighter supply.

Until recently, the broad consensus among forecasters was that copper would enjoy a comfortable surplus for the next few years, before tightening sharply later in the decade as supply struggles to keep up with surging demand for the energy transition.

The expectation for a looser market in the near term has been reflected in copper prices, which drifted sideways for most of this year, while inventory levels on the London Metal Exchange ...