4 Charts That Explain the Copper Supply Crunch Investors Should Watch
The case for copper and copper stocks like Freeport-McMoRan (NYSE: FCX) or a copper ETF like the Global X Copper Miners ETF (NYSEMKT: COPX) rests on the idea that demand will outstrip supply, putting upward pressure on the copper price. It’s a strong argument for long-term investment in an industrial metal that’s critical to the economy of the future. Here’s why.
According to an S&P Global report, “Copper in the Age of AI,” copper demand will exceed the baseline supply, with a widening gap appearing after 2030. I’ve re-created a chart using the data. As you can see, copper supply is projected to start declining from about 2035, driven by pressures including:
While it’s not impossible that some of these pressures can be relieved or even removed, it makes sense not to bake in any assumptions that they will be until there’s hard evidence they’re happening.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.