If the economy is doing well, the copper price is also doing well

There are several reasons for this. The copper price is still too low for investments to be made in the development of new deposits and in production. Although China’s economy – which is important for copper consumption – is still suffering, the pressure on the Chinese government appears to be increasing. Stronger and more stimulus measures are being demanded. China has already announced an easing of its interest rate and monetary policy. This is the first step towards helping the economy back on its feet.

Another positive factor for the copper price trend is the increasing shortage, as the supply situation is tense. After all, the reddish metal is a key raw material for the energy transition. The electromobility sector, the electrical industry, mechanical engineering and the construction industry are all dependent on the metal. The price of copper reached a new record high in spring 2024, but then fell again over the course of the year. This was probably caused by concerns about China’s economic development.

The International Monetary Fund (IMF) expects global economic growth to remain stable in 2025. The US economy is performing better than expected quarter after quarter. Inflation figures are approaching the desired target, and the labor market appears to be stable according to the data. President-elect Donald Trump’s future trade policy is still causing uncertainty, although some expect a tailwind for the economy. According to the IMF, the outlook for the European Union points to stagnation, unlike in the USA. Overall, the economy is growing and demand for copper is therefore likely to be strong.

This is good for the price and the companies with copper in the projects, such as Mogotes Metals – https://www.commodity-tv.com/ondemand/companies/profil/mogotes-metals-inc/ -. Active in Chile and Argentina, the Filo Sur copper project in the Vicuña district of Argentina looks particularly promising.

Meridian Mining – https://www.commodity-tv.com/ondemand/companies/profil/meridian-mining-uk-societas/ – owns copper, zinc, gold and silver in Brazil. The Cabaçal project boasts a very good preliminary economic assessment.

Current company information and press releases from Meridian Mining (- https://www.resource-capital.ch/en/companies/meridian-mining-uk-societas/ -) and Mogotes Metals (- https://www.resource-capital.ch/en/companies/mogotes-metals-inc/ -).

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