Copper prices are surging toward two-year highs, driven by a perfect storm of low inventories, increasing demand from the electrification and renewable sectors, and persistent supply constraints. Trading around US$4.3/lb, copper’s price has climbed more than 12% since March, igniting significant rallies in related stocks like Sandfire Resources and the Global X Copper Miners ETF.
Experts, including Michael Orphanides, CFA from Tribeca Investment Partners, believe this marks the beginning of a multi-year rally for the metal, due to operational challenges and rising costs across the industry. Further, as copper approaches the US$5/lb threshold, the emerging demands from AI technology are expected to tighten the market even further moving forward.
Read more here: Copper prices are soaring but there’s plenty of upside left in the tank: Tribeca