![]() In late April 2021, commodities analysts at the Bank of America (NYSE: BAC) noted that copper inventories were at their lowest levels in 15 years, covering a mere 3.3 weeks of demand. "(However,) significant investment in copper mining is required to avoid the shortfall.”įurthermore, concern is growing over low warehouse inventories of copper. “A deficit of this magnitude would have wide-reaching ramifications for the energy transition as there is currently no substitute for copper in electrical applications,” they said in a note. In addition, delayed investments amid the pandemic will also have long-term repercussions for copper supply.īy 2030, analysts at Rystad Energy project that copper demand will outstrip supply by more than 6 million metric tons. The pandemic made the situation worse as mining activities in several top copper-producing countries faced work stoppages and copper companies delayed investments in further exploration and development - a challenging problem considering it can take as many as 10 to 20 years to move a project from discovery to production. On the supply side of the copper market, the world’s largest copper mines are facing depleting high-grade copper resources, while over the last decade or more new copper discoveries have become few and far between. While internal combustion engine vehicles use about 22 kilograms of copper, hybrid EVs use 40 kilograms, plug-in hybrid EVs use 55 kilograms, battery EVs use 80 kilograms and battery electric buses use 253 kilograms.Įleni Joannides, principal copper analyst with research firm Wood Mackenzie, told INN that the amount of copper Europe will require to meet forecast EV demand will depend on what type of EVs spark consumer interest. In 2021, it led the world in EV sales, with a total of about 2.3 million units sold, and analysts expect that trend to continue in the coming years. As governments push forward with transportation network electrification and energy storage initiatives as a means to combat climate change, copper demand from this segment is expected to surge.Įurope is becoming a strong hotbed for copper use as its renewable energy sector grows. ![]() However, the biggest drivers of copper consumption in the renewable energy sector are rising global demand for electric vehicles (EV), EV charging infrastructure and energy storage applications. A strong rebound in industrial production and construction activity in the Asian nation is expected to buoy copper prices going forward.Īdditionally, copper’s conductive properties are increasingly being sought after for use in renewable energy applications, including thermal, hydro, wind and solar energy. In recent decades, copper price spikes have been strongly tied to rising demand from China as the economic powerhouse injects government-backed funding into new housing and infrastructure. Rising demand for new homes and home renovations in both Asian and western economies is expected to support copper prices moving forward. ![]() In fact, construction is responsible for nearly half of global copper consumption. The ever-growing number of copper uses in everyday life - from building construction and electrical grids to electronic products and home appliances - make it the world’s third most-consumed metal.Ĭopper’s anti-corrosive and highly conductive properties are why it’s the go-to metal for the construction industry (for example, in copper pipes and copper wiring). Robust demand has long been one of the strongest factors driving copper prices. ![]() Highest price for copper: Copper price drivers Top Battery Metals Stocks on the TSX and TSXV.
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