2024-04-10 17:54:00
Gold is a safe haven that is near the top. But it is not the only metal to see its price soar. Copper, too, is breaking records. Since the start of the year, its price has appreciated by 10%.
Demand for copper is sustained as it is important in the context of the energy transition. Whether for connecting wind farms or manufacturing electric cars, copper is an essential raw material. China, the largest consumer of copper in the world, also weighs heavily on demand and its impact on the price of copper. India, too, saw its demand increase by 18% last year and is expected to continue this trend. Faced with this explosion in demand, supply is sometimes struggling to keep up. Indeed, the volumes extracted by the mining giant Coldeco (Chile) have continued to decline in recent years. And in Peru, the world’s second largest producer, there are social unrest which makes final production uncertain. Fortunately, the weakness of the dollar has allowed large copper importers to pay more for the raw material without feeling the consequences.
For the industry and the consumer, if prices continue to soar and the dollar rises, this might have an impact on production costs and the selling price of many devices containing copper. On the other hand, for investors, this is excellent news. At €9,295 per tonne, copper has colors. Deutsche Bank expects this situation to continue for some time. The bank expects a copper price target of $9,600 per tonne. Bank of America itself expects a price of $10,250 per ton at the end of this year. Citi analysts look a little further ahead and predict a rate of $12,000 per ton within two years.
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