Copper remains one of the Company’s largest exposures with >40% net long positions to various global producers and developers. Like a number of commodities we analyse, copper is materially supply constrained, has record-low inventories and is in the early stages of significant demand growth from electrification.
The red metal has traded between US$8,000-9,000 per tonne for the last 18 months and was rangebound within US$9,000-10,000 per tonne in the period prior. Copper equities have also generally been trading in a sideways pattern but are looking increasingly likely to break out on the improving fundamental outlook for the commodity.
Portfolio Manager, Ben Cleary, discusses in the article the key drivers for the copper market and why he thinks the commodity will trend towards US$15,000 per tonne in coming years. As articulated in recent commentary, key positions exposed to copper such as Freeport, Teck Resources and Glencore appreciated strongly in March and continue to provide significant operating leverage to the copper thematic.
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