If it’s about electrification, it’s also about copper

Large quantities of copper are needed for increasing electrification. According to S&P Global, around 25 million metric tons of copper are consumed each year today, but this figure is expected to rise to around 50 million metric tons by 2035. Global efforts and investments in new technologies will therefore fuel the demand for copper. To ensure that copper does not become a scarce commodity, new mining projects must be driven forward. Recycling alone is not enough. China is one of the largest copper producers on earth. Around 1.8 million tons of copper came from China’s mines last year. The world’s largest copper producer is Chile, where around 5.6 million tons of copper saw the light of day. In total, global copper production in 2021 amounted to approximately 21 million tons. The market will have to be balanced by recycling and destocking. Nevertheless, a market deficit is expected, which should drive the price.

In the short term, the situation looks somewhat different, which offers the opportunity for favorable entrants. This is because corona outbreaks are still being recorded in various provinces in China, which can cause large-scale lockdowns and are thus not beneficial for metals such as copper. As a result, copper prices are also softening as metal prices are under pressure. Chile’s most important copper producer has already revised its production forecast for this year downwards. Operational problems are said to be the cause. The price is currently far from the record price of March, around 10,700 US dollars per ton of copper. Copper is used in mechanical engineering, the construction industry, the automotive sector and the electrical sector. Whether supply bottlenecks are accompanied by falling demand, an economic slowdown should in any case only be a temporary development. After all, in the longer term, copper is likely to be one of the favorites on the commodities market. This puts companies with copper in the spotlight, such as Hannan Metals or Kutcho Copper.

Hannan Metals – https://www.youtube.com/watch?v=fDNxCtW987s – owns vast tracts of land in Peru that contain copper, gold and silver.

Kutcho Copper – https://www.youtube.com/watch?v=sxgE0FrL-Dg – is advancing the prospective Kutcho project (copper, zinc) in British Columbia.

Current corporate information and press releases from Hannan Metals (- https://www.resource-capital.ch/en/companies/hannan-metals-ltd/ -) and Kutcho Copper (- https://www.resource-capital.ch/en/companies/kutcho-copper-corp/ -).

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