juniorbullalive wrote: And load up on copper producers ! TM will hit investors spotlights as production begins next month
From CIBC
Looking at the demand side, CIBC expects copper demand to jump 5.6% this year compared to 2020. Looking past the pandemic effects on global growth, the analysts said that demand is expected to remain around 3% through 2024. The report noted that more than half the demand is expected to come from China.
Although the latest speculative trade data from the Commodities Futures Trading Commission shows hedge funds lower their exposure to gold, CIBC said that the market remains significantly bullish
"The last time we observed such an optimistic positioning of CFTC copper managed money positions was in May 2018, with a market consensus for global synchronized growth, before trade disputes between the U.S. and China started to escalate," the analysts said. "In our view, the current positive tone in the copper market could be further supported by a decline in trade disputes with the electionof Joe Biden as the next president of the U.S."
Looking at the equity market, CBIC said that copper producers are significantly undervalued with the the market reflecting copper prices of below $4 a pound.
"Capstone, Copper Mountain and Hudbay are discounting the lowest copper price between $3.40/lb and $3.60/lb," the analysts said. "As elevated copper prices persist in 2021, and on our revised price deck, we see potential for the higher copper prices to be reflected in our coverage group, and overall underpins our positive outlook on the sector."