Copper 02 (Nov 12 - Dec 25)

[winston]

As the renewable energy boom gains momentum, it will produce an echo-boom in demand for key battery metals.

The average EV uses almost half as much copper as the average American house, and EVs aren’t the only “green” products that are “metal hogs.”

- Wind energy uses five to 10 times more copper per unit of electrical energy than does the conventional burning of coal.

- Photovoltaic solar power uses six times more copper per unit of electrical energy.

- A Tesla Model 3 requires 240 pounds of copper, which is nearly four times what a midsized internal combustion vehicle requires.

Copper demand for EV battery production will jump 750% this decade – from 210,000 tons in 2020 to 1.8 million tons.

Alongside that surge, copper demand for EV charging stations will soar more than 1,000% by 2030.

The copper supply is under extreme geological pressure; ore grades at the world’s major copper mines are declining.

As this decline intensifies, copper supplies do not merely become less plentiful, they also become more expensive to extract.

Source: Investor Place

[winston]

Copper Slump Will Give Way to Record Buying Spree, Citi Says

by Mark Burton

Slumped in recent months on weakening demand from traditional sectors like construction and consumer goods.

They’re likely to pile in quickly as soon as the gloomy global growth outlook starts to improve.

Source: Bloomberg

https://finance.yahoo.com/news/copper-s ... 08677.html

[behappyalways]

Why Copper Is Now One of the World's Most In-Demand Metals | WSJ
https://m.youtube.com/watch?v=jP_t1lo0ZgA

[behappyalways]

Copper chase

First Quantum rebuffs informal approach from Barrick Gold
https://www.mining.com/web/first-quantu ... rick-gold/

[winston]

Billionaire Miner Friedland Warns of a Copper ‘Train Wreck’ as Supply Stalls

by James Attwood and Jacob Lorinc

A combination of factors suggests supply won’t keep pace, according to billionaire Robert Friedland. They include the fact that deposits are getting pricier and trickier to find and dig up, funding is scarce and societies have yet to grasp mining’s role in the shift from fossil fuels.

“My fear is that when push finally comes to shove” copper can go up 10 times.

Friedland sees copper’s longer-term prospects supported by decarbonization, ongoing Chinese demand, the emergence of India and re-militarization in the wake of Russia’s invasion of Ukraine.

On the supply side, output in top producer Chile has plateaued as ore quality deteriorates. The industry in general is having to dig deeper and contend with an uptick in resource nationalism and far more stringent environmental and social standards.

Source: Bloomberg

https://finance.yahoo.com/news/billiona ... 37782.html

[behappyalways]

The Copper Supply Conundrum

Three reasons why we can't easily add new copper supply at the current spot price:
1) We haven't found new major deposits despite investing billions since 2010s
2) New copper mines require $15k/ton to breakeven
3) Declining mine approval rates

https://twitter.com/marketplunger1/stat ... 1285163008

[behappyalways]

Another Top Miner Predicts Copper 'Super Cycle' Amid Supply Shortage Fears Trigger By Energy Transition
https://www.zerohedge.com/commodities/a ... ger-energy

[behappyalways]

Hudbay Minerals CEO says company open to acquisition offers at right price
https://www.mining.com/web/hudbay-miner ... ght-price/

[winston]

CHINA STRATEGY: COPPER BEING A MAJOR BENEFICIARY TO CONSUMPTION STIMULUS

Last week, the National Development and Reform Commission (NDRC) announced plans to promote auto / new energy vehicles (NEV) and home appliance consumption.

We believe China’s copper demand will not only benefit from new energy vehicles (NEV) production and the construction of high-quality charging infrastructure system, but also rising grid investment and renewable energy installations.

Also, a softening of USD would be supportive for copper price.

In 2Q23, London Metal Exchange (LME) copper price and China copper price dropped 4.7% and 1.5% quarter-on-quarter (QoQ) respectively.

We expect copper prices are likely to stabilise within a range given rising demand and tight inventory would be partially offset by increasing supply from the resumption of the production of existing mines.

Any new supply disruptions and stronger-than-expected demand are likely to be an upside risk to copper prices.

Source: OCBC

[behappyalways]

Copper is the 'most strategic' out of all the metals, says Barrick Gold CEO Mark Bristow
https://m.youtube.com/watch?v=jrAskxFbIDg