Loading ...Mainstream media and the large mining companies are finally catching on to what we at AOTH have been saying for the past two years: the copper market is heading for a severe supply shortage due to a perfect storm of under-exploration/ lack of discovery of new deposits, clashing with a huge increase in demand due to electrification and decarbonization.
Dramatic price rise
Copper is trading over $4.00 a pound this year on rapidly tightening physical markets, rebounding economic growth especially in China, the top metals consumer, and the expectation that the era of low inflation in key economies may soon be over.
Rising more than 22% in 2020, copper had its best year since 2017, with prices boosted by hopes for “green” stimulus (the red metal is an important component of electric vehicles and renewable energy systems. The United States, EU and China have all promised trillions worth of green infrastructure spending), the global 5G build-out, China’s recovery from the coronavirus, and virus-related supply disruptions in top copper producers Chile, Peru and Mexico.
more https://aheadoftheherd.com/copper-shortage-narrative-goes-mainstream/