Nevada Copper Corp T.NCU

Copper price collapses as renewable hopes falter

[patchh]

y the end of September and beginning of October, copper prices dropped significantly. Now quotations on commodity metal exchanges have dropped below 8 thousand dollars per ton. This is the lowest price since November 2022. From May to the first half of September this year, the cost of the main metal for the renewable energy industry only grew. But as the market for renewable energy sources and green energy sobered up, which did not live up to expectations, prices collapsed. As experts write, they continue to decline, that is, this has already become a trend. Factors such as global economic woes, weak demand from China and delays in U.S. renewable energy plans are contributing to the metal's price falling.




According to the most conservative estimates of the International Copper Study Group (ICSG), at the peak of the hype around renewable energy sources and copper as the main raw material for them, the market experienced overproduction. The resulting surplus has lowered costs and also accumulated inventories, which are expected to impact the market until 2027.

Only after this date is a new shortage of raw metal expected, experts believe. However, by that time, resource extraction may lose its meaning altogether.

In general, hopes for a total environmental agenda and impressive efforts in the field did not materialize. Humanity, on the verge of a crisis, requires more accessible and cheaper, as well as stable and intensive sources. As the failure with wind generators showed, green energy still has a long way to go to match the performance of the traditional sector. Accordingly, the excitement around raw materials disappeared.

The current collapse in copper prices is very significant and symbolic. The point is not only in the sharp decline in prices, but also in the emerging trend of cooling investors and developers towards the renewable energy industry and risky projects of the future in general. The boom in commodity trading has come to an end, just like the next super cycle, experts believe.

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