Market analysis believes that copper prices may double to US$20,000/ton

According to analysts on the oil price website today, May 6, analysts said that the surge in demand and insufficient supply of new copper projects may cause the price of copper to jump to US$20,000 per ton within a few years, which is the current price of about US$10,000 per ton.

The surge in demand for key minerals (including copper) that support the energy transition has made copper one of the hottest metals this year, with prices jumping to US$10,000 per ton.

Copper will be a key metal in the energy transition, but the International Energy Agency (IEA) said in a new report "The Role of Critical Minerals in the Clean Energy Transition" released this week that it is expected that by 2030, existing mines and projects under construction will be The copper supply will reach about 80% of the world's copper demand, in line with climate goals.

The IEA stated that the power grid requires large amounts of copper and aluminum, and copper is the cornerstone of all power-related technologies.

However, as time goes by, the resource quality of copper mine projects is declining.

This is why David Neuhauser, the founder and managing director of the American hedge fund Livermore Partners, said in an interview with CNBC this week: "It's not surprising that copper is the new oil.

Neuhauser told CNBC: "I think copper is a new kind of oil, and I think copper will look great in the next 5 to 10 years, with a potential value of US$20,000 per metric ton.

A few days ago, Bank of America stated in a research report that if copper stocks are exhausted, the price of this key energy transition metal may reach US$20,000 per ton as early as 2025.

　　Wang Lei excerpted from today's oil prices

　　The original text is as follows:

　　Analysts: Copper Prices Could Double To $20,000 Per Ton

　　Surging demand and insufficient supply of new copper projects could result in copper prices jumping to $20,000 per metric ton in a few years, double the current price of around $10,000 per ton which is the highest in a decade, analysts say.

　　Soaring demand for critical minerals to support the energy transition, including copper, has already made copper one of the hottest metals this year, with prices jumping to $10,000 per ton, double from the pre-pandemic levels due to the global push toward decarbonization and government support for electric vehicles (EVs) and renewable electricity generation.

　　Copper will be the key metal in the energy transition.

　　"Electricity networks need a huge amount of copper and aluminium, with copper being a cornerstone for all electricity-related technologies," the IEA said.

　　However, the copper projects are seeing a decline in resource quality over time.

　　That's why it's no surprise that David Neuhauser, founder and managing director of US hedge fund Livermore Partners, told CNBC this week that “copper is the new oil.

　　"I think copper is the new oil and I think copper, for the next five to 10 years, is going to look tremendous with the potential for $20,000 per metric ton," Neuhauser told CNBC.

　　A few days ago, Bank of America said in a research note that if inventories of copper deplete, the price of the key energy transition metal could hit $20,000 per ton as early as 2025.