Energy transition drives copper price

Copper is considered an indicator of the global economy, hence the name "Dr. Copper". When the price of the reddish metal rises, economic activity picks up. The energy transition is advancing, and this is consuming copper. Thus, China, among many other countries, is also investing in green infrastructure. The country is already stocking up on copper, as Chinese inventory data shows. Last year, the copper price did not bring much joy, but now there seems to be a turning point. Electric vehicles require approximately 180 to 190 pounds of copper in production.

Artificial intelligence also demands more copper because this sector relies on a gigantic electricity consumption. As the demand for copper increases, despite the global economy still faltering, and supply is limited, many analysts predict rising copper prices. Surpassing the $10,000 mark sustainably is likely only a matter of time.

There are hardly any new copper projects, and existing mines are struggling with declining ore grades. So, the new areas of demand are now adding to the construction sector, an important consumer of copper. Copper demand increased by 3.6 percent in 2023. An annual increase of about four percent is predicted for the coming years. A deficit in Dr. Copper is expected this year and especially in the following years. The low price of around $7,000 per ton of copper, seen in 2022, is likely to be a thing of the past. Among the interesting companies that have copper on their radar alongside gold (always noteworthy) are, for example, GoldMining or Osisko Gold Royalty among the royalty companies.

GoldMining – https://www.commodity-tv.com/ondemand/companies/profil/goldmining-inc/ – has gold and gold-copper properties in North and South America and one of the largest gold resources globally.

Osisko Gold – https://www.commodity-tv.com/ondemand/companies/profil/osisko-gold-royalties-ltd/ – Royalties boasts over 180 royalties and streams in terms of gold and copper. The company has just increased its quarterly dividend by eight percent.

For current company information and press releases from GoldMining (- https://www.resource-capital.ch/de/unternehmen/goldmining-inc/ -) and Osisko Gold Royalties (- https://www.resource-capital.ch/de/unternehmen/osisko-gold-royalties-ltd/ -).

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