Also, a new taxes and royalties bill in Chile, which has already approved by the Senate could, if unaltered, may put around 25% of the copper output from the country at risk. The emergence of new strains might lead to operations being disrupted again and thus impact copper supply. Supply from these countries had been under pressure due to the impact of the coronavirus pandemic. Per Statista, global copper demand for charging infrastructure is expected to reach some 115,000 metric tons by 2025.Ĭhile and Peru together account for close to 40% of the world’s copper production. Per the International Energy Agency, clean energy technologies will account for around 45% of copper demand in 2040, higher than 24% in 2020. The EV charging infrastructure is largely based on copper-based technologies. According to the International Copper Association (“ICA”), while conventional cars contain 18 to 49 pounds of copper, plug-in hybrid electric vehicles (PHEV) use 132 pounds and battery electric vehicles (BEV) contain 183 pounds. The red metal is an essential component in EVs and is utilized in electric motors, batteries, inverters and wiring. The increasing global awareness regarding cleaner energy and electric cars will be a key catalyst for copper demand in the long term. Infrastructure development in major countries such as China and India will particularly support demand. Sustained growth in copper demand is anticipated to continue as the metal is essential to economic activity. Beyond 2022, global growth is projected to moderate to about 3.3% over the medium term. The International Monetary Fund’s (“IMF”) forecast anticipates the world economy to expand by 4.9% in 2022. Given its widespread use, copper has long been considered as a bellwether for the global economy. Copper is the third most consumed industrial metal in the world, according to the U.S. Copper “Charging Ahead”Ĭopper is a metal essential to the global economy and will play a crucial role in the achievement of the global clean energy transition. ( FCX Quick Quote FCX - Free Report), Southern Copper Corporation ( SCCO Quick Quote SCCO - Free Report) and Teck Resources Limited ( TECK Quick Quote TECK - Free Report) that are well-poised to capitalize on this growth trend. We suggest keeping an eye on stocks like BHP Group ( BHP Quick Quote BHP - Free Report), Freeport-McMoRan Inc. Supply constraints, low stockpiles and a solid long-term demand outlook supported by the ongoing green energy revolution are likely to keep copper prices elevated. It is currently at around $4.42 per pound, with the yearly average at around $4.24 per pound. So far this year, copper ranged from a low of $3.5035 per pound in February to an all-time high of $4.8840 per pound in May. The recovery in industrial demand worldwide, optimism regarding economic growth, demand in top consumer China, disruptions in top producers Chile and Peru, and Biden’s infrastructure plan all worked in favor of the metal. Copper prices surged around 25% this year.
0 kommentar(er)
