There is a huge problem in the Copper Market. Despite strong demand growth from electric cars and battery production about 40% of the world’s current copper production will close over the next 10 to 20 years. In other words demand is going up while supply is scheduled to shrink. Check out The world’s top 10 highest-grade copper mines for investment opportunities after reading this analysis - R. Zurrer for Money Talks
The next big commodity story isn’t some exotic metal like cobalt or palladium…
It’s much more simple and important. The next boom in natural resources is copper.
While we know the story, the numbers are incredible. The price of copper is up 44% in the last two years.
If you don’t have a position in copper mining, you should buy right now.
A Huge Problem for the Copper Market
Monthly demand for copper rose 82% since January 2000, as you can see from the chart below:
As you can see, the trend works out to about 3.4% annual growth in copper demand. That’s setting up a huge problem for the copper market in the next 10 years.
According to a mining analyst with CRU, around 220 mines — about 40% of the world’s current copper production — will close over the next 10 to 20 years. In addition, mines that continue to produce will do so with lower grades — less metal per ton of rock moved.