The copper market is in a worrying situation, with a 25.9% drop in stocks in one week on the Shanghai market, one of the world’s largest metal markets. This decrease represents nearly 39,228 tonnes, thus reaching its lowest level since September 2022.
According to the Metals Tribune, copper prices are experiencing an increase as of August 22, 2023, raising hopes of a recovery in demand this fall. This news should delight economic actors and public finance managers in the Democratic Republic of Congo, because the country derives a large part of its financial resources from the export of raw materials, particularly copper.
According to figures from the Ministry of Mines of the Democratic Republic of Congo, copper production reached 2,359,824 tons at the end of 2023, compared to 1,802,897 tons in 2021. This 31% increase in the production of copper in 2022 has had a significant impact on government revenue mobilization.
Despite the government’s efforts to diversify the national economy, the mining sector will continue to play a major role in mobilizing public revenue. The Democratic Republic of the Congo should continue to closely monitor copper market developments and price fluctuations in order to take appropriate measures to maximize its revenues.
In conclusion, the drop in copper inventories on the Shanghai market raises concerns about the future demand for this metal. The Democratic Republic of Congo, as one of the world’s leading copper producers, will be greatly affected by these market fluctuations. It is important for the country to prepare for these changes, while exploring ways to diversify its economy to reduce its dependence on raw materials