There’s no end in sight to the copper rally.
With tightening supply issues, and an increase in demand, Goldman Sachs says copper could rally to $15,000 by 2025. The firm also believes annual demand for copper could skyrocket 900% to 8.7 million tons by 2030.
Plus, with Chile, China, and global decarbonization efforts, demand will only increase.
For one, there’s the potential for supply disruptions in Chile.
According to Mining.com, “Workers at BHP’s Escondida and Spence mines rejected BHP’s final wage offer, with almost 97% of the union’s members opting to strike. Combined, Escondida and Spence account for almost 20% of annual copper output in Chile, the world’s largest producer of the metal.”
Two, copper demand in China is gaining momentum. “Demand in top user China is recovering after prices retreated, Jinrui Futures Co. said,” as noted by Bloomberg.
Three, “Copper will be crucial in achieving decarbonization and replacing oil with renewable energy sources, and right now, the market is facing a supply crunch that could boost the price by more than 60% in four year,” reports Business Insider. Electric vehicles, for example, use four times as much copper as petroleum-based cars.
With that in mind, there’s still plenty of time to invest in copper stocks, such as Freeport McMoRan (FCX), Southern Copper (SCCO), BHP Group (BHP), and Riot Tinto (RIO). You may also want to keep an eye on the Global X Copper Miners ETF (COPX).
We highlighted opportunity in each of those opportunities on April 26, 2021.
The post This is Why Copper Prices Will Remain Red-Hot this Year appeared first on Morningology.
