Updated: Aug 27, 2022
Copper is leading the way towards a super cycle
While metals such as lithium, uranium, iron ore, aluminium, zinc, lead, and nickel will play a role in supporting our post-pandemic economy, the red metal known as copper may lead all other commodities when demand is assessed compared to available supply.
Copper is used in electrical wiring, appliances and plumbing for the housing, commercial property and construction boom. The emerging Electric Vehicle is quickly converting from reliance on fossil fuels to electricity and battery technology creating another new demand for copper.
Renewable energy sources such as wind power, hydro power and solar power rely on copper for electricity transfer. Copper mines are working hard and being constructed around the world in Australia, South America and Africa, to help assist in the answer for the copper demand.
The high speed at which our economy is recovering from the pandemic should put the wind at our backs as there is more demand for EV cars, houses and renewable energy. The copper price has soared 90 per cent over the past year to trade above $10,000 a tonne for the first time in a decade.
Photo: Ideanomics EV, Technology & Fintech company Medici Motors - Electric Buses
“The emerging Electric Vehicle is quickly converting from reliance on fossil fuels to electricity and battery technology creating another new demand for copper. ”
Photo: Shanghai, China’s biggest city and a global financial hub.
China is Positioning itself to dominate copper supply
China has timed and strategically set themselves up for success with investing billions in to green energy and have foresight by leading the world in the green energy movement happening globally now.
I believe a copper super cycle is only around the corner. What is a super cycle? A period of abnormally strong demand that producers struggle to keep up with.
China’s domestic production of copper is inadequate relative to demand, according to research reports. China’s investments into operations in foreign countries has expanded and will help supply their own domestic needs for the supply of copper.
Chinese domestic production constitutes almost 8% of global mined copper tonnage, slightly ahead of the U.S. with about 6%. China currently consumes about 52% of the world’s refined copper and produces about 41%, according to research reports. As I stated, I believe a copper super cycle is only around the corner and that is evidential with the copper price soaring up to 90 per cent over the past year to trade above $10,000 a tonne for the first time in a decade.
Red Metal Limited - RDM, Hawkstone Mining Ltd – HWK, Castle Minerals Ltd – CDT Matador Mining Ltd - MZZ, Surefire Resources - SRN, Ardiden Ltd - ADV Sources: https://www.greencarcongress.com/ | https://news.rice.edu/ | https://www.mining.com/ | https://www.bakerinstitute.org/