“We are moving towards a doubling of demand growth for copper due to the electrification of the world, including electric vehicles, solar panels, wind farms, as well as military usage and data centers,” the top trader told the Financial Times.
Andurand, a former Goldman Sachs trader who co-founded BlueGold Capital before launching Andurand Capital, manages approximately $2 billion in assets.
“I think we could see prices up to $40,000 per tonne ($18.18/lb) over the next four years or so. I’m not saying it will stay there indefinitely; eventually, we will get a supply response, but that supply response will take more than five years.”
In another bullish analysis, Jeff Currie, former Goldman Sachs executive and more recently chief strategy officer of energy pathways at asset manager Carlyle, told Bloomberg in an interview last week that copper “is the highest conviction trade I have ever seen.”
Currie sees copper prices reaching $15,000 a tonne ($6.80/lb).
The demand for copper in the transport sector alone is projected to increase by 11.1 times by 2050, compared to 2022. Electric vehicles, for example, can contain more than a mile of copper wiring.
Additionally, the demand for copper needed to expand the global electricity grid is projected to increase by 4.8 times by 2050, compared to 2022.
By 2030, the copper supply gap is projected to approach 10 million tonnes, according to BloombergNEF estimates.