Macroeconomic environment
Table of contents
- The average annual price of copper (cash settlement on the LME) in 2022 was 8,797 USD/t. The highest price was recorded on 7 March (10,730 USD/t), which also set a historical record. The lowest price was recorded on 15 July (7,000 USD/t).
- In terms of cash settlement prices, copper dwindled by 13% last year (first vs. last day of the year). However, it is worth pointing out that 2022 was a record year in terms of copper prices denominated in Polish złoty. The average price in the previous year was 39,037 PLN/t (daily LME prices calculated after the NBP fixing).
- At the beginning of 2022, the price of silver underwent a sharp increase, having reached its last year’s peak above 26 USD/oz. From then on, silver followed a downward trend, having reached its last year’s minimum near 17.50 USD/oz on 1 September.
- The average price of silver according to the London Bullion Market Association (LBMA) decreased in 2022 by 13.5% to 21.73 USD/oz t, compared to 25.14 USD/oz t in 2021.
- The price of molybdenum hovered around 19 USD/lb until May. In August, it slipped below 14 USD/lb, following which it kept rising steadily to wrap up the year at 26.13 USD/lb.
- The average price of molybdenum in 2022 was 18.51 USD/lb, 17% more than the average for 2021 (15.82 USD/lb).
Market conditions relevant to the operations of the KGHM Polska Miedź S.A. Group in 2021-2022, average quotations
| J.m. | 2022 | 2021 | Change (%) | Q4 22 | Q3 22 | Q2 22 | Q1 22 | |
|---|---|---|---|---|---|---|---|---|
| Copper price on the LME | USD/t | 8.797 | 9.317 | (5.6) | 8.001 | 7.745 | 9.513 | 9.997 |
| Copper price on the LME in PLN | PLN/t | 39.037 | 36.017 | +8.4 | 37.118 | 36.469 | 41.485 | 41.273 |
| Silver price per the LBMA | USD/oz t | 21.73 | 25.14 | (13.6) | 21.17 | 19.23 | 22.60 | 24.01 |
| Molybdenum price per Platts | USD/lb | 18.51 | 15.82 | +17.0 | 20.61 | 15.97 | 18.48 | 19.07 |
| USD/PLN exchange rate per the NBP | 4.4615 | 3.8647 | +15.4 | 4.6397 | 4.7139 | 4.3597 | 4.1260 | |
| USD/CAD exchange rate per the Bank of Canada | 1.3013 | 1.2535 | +3.8 | 1.3578 | 1.3056 | 1.2768 | 1.2662 | |
| USD/CLP exchange rate per the Bank of Chile | 872 | 759 | +14.9 | 915 | 926 | 842 | 809 |