In the first four months of 2021, copper stocks were below the level of 2020. According to industry experts, LME stocks will decrease. This could give rise to fears of a physical copper shortage in the short term.
With regard to copper demand, robust growth is expected, so a lot has to be added in order for supply to keep pace with demand. The risk of tax changes in Chile and Peru also creates risks for the medium-term copper supply.
The energy transition and the increasing number of electric vehicles in the next ten years are seen as clearly positive long-term drivers for copper demand. If the infrastructure and construction plans from China or the USA, for example, remain in place for a long time, this will also support copper demand. In these areas there is also no substitute for the reddish metal. Similar to some other raw materials, the metal content per ton of rock in the copper mines is also falling, and there are labor disputes in some places. In this scenario, the price of copper rose to a record high in the first half of 2021, cracking the $ 10,000 mark in late April.
You could think about investing in companies that have copper in their projects. For example in Copper Mountain Mining. Its Copper Mountain Mine in British Columbia, which the company has a 75 percent interest, has just posted record production.
Hannan Metals – https://www.youtube.com/watch?v=OCuDksuW8bc – Owns the San Martin copper-silver project in Peru and has staked 88 mineral concessions there.
Current company information and press releases from Copper Mountain Mining (- https://www.resource-capital.ch/de/unternehmen/copper-mountain-mining-corp/ -) and Hannan Metals (-https: //www.resource-capital.ch/de/unternehmen/hannan-metals-ltd/ -).
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