Shortage expected
Investors have been piling into copper as global stimulus spurs demand and longer-term projections show supply won’t match the surge in consumption from the green-energy transition.
With few new mines being developed, both Trafigura Group, the world’s top copper trader, and Goldman Sachs say prices could hit $15,000 a tonne in the coming years.
“We think we could go as high as $20,000 a tonne if the supply of scrap copper doesn’t make it to the market,” Francisco Blanch, head of global commodities and derivatives research at Bank of America, told Bloomberg. (Watch the full interview below)