Stock Markets Send Shockwaves
The stock market has been on a rollercoaster ride in recent times. The investors have been closely watching a series of events that have sent shockwaves through the global economy.
From the ongoing COVID-19 pandemic to the ever-changing political landscape, there are many factors at play that could impact stock prices and market sentiment.
Amidst the ever-changing stock markets, copper stocks have been making headlines recently.
The demand for the red metal continues to soar amid an economic recovery and growing interest in green energy.
Copper Prices Remain Resilient
Over the past month, copper prices have experienced some volatility, but have generally been on an upward trend.
From February 8th to February 22nd, copper prices increased steadily from around $4.10 per pound to just over $4.30 per pound.
However, in the last week of February, prices experienced a sudden dip, falling to around $4.15 per pound by February 28th.
Since then, prices have been slowly climbing again, reaching around $4.20 per pound as of March 6th.
Despite this recent dip, the overall trend seems to be positive, indicating continued demand for copper in various industries.
Copper as an Indicator of Economic Growth
Copper is widely regarded as a key indicator of economic growth. Therefore, many investors are keeping a close eye on the market to see how it will perform in the months ahead.
It is important to understand the trends impacting copper stocks, including supply chain disruptions, rising prices, and new innovations in the mining industry.
Whether you’re a seasoned copper investor or just getting started, read on to learn everything you need to know about this crucial metal.
Copper prices had been experiencing a steady increase over the past several months due to the global economic recovery.
There has also been an increase in demand for copper in industries such as electronics and renewable energy.
Copper Regains Momentum
The COVID-19 pandemic had caused a temporary drop in demand for copper, but the market had been steadily recovering since mid-2020.
However, there were concerns about supply disruptions due to COVID-19-related lockdowns in major copper-producing countries such as Chile and Peru.
This was coupled with labor disputes in some mines.
Overall, the current copper market appeared to be optimistic, but subject to potential disruptions and uncertainties.
Copper Demand to Double
A group of some largest copper producers have unveiled a plan to eliminate direct and indirect greenhouse gas emissions from their operations by 2050.
The move, announced by the International Copper Association aims to make the copper sector more appealing to environmentally conscious investment funds.
Copper demand is expected to double to 50 million tons by 2050, which is why the Association has set ambitious goals for its members.
This includes KGHM from Poland, JX Nippon Mining & Metals Corporation from Japan, Freeport-McMoRan, Glencore, Codelco from Chile, and iBHP Group.
Members have been instructed to cut direct and indirect emissions. By 2030, they have to cut them down by 30% to 40%. In the following decade (2031 to 2040), they have to be cut by 70% to 80%. These are the targets set before achieving zero emissions by 2050.
Making Copper Industry and Attractive Investment
The plan is expected to be achieved by de-carbonizing power supply, improving efficiency, and increasing the use of scrap metal in copper production.
The copper producers will also work with their customers to reduce their own emissions.
The ICA believes these ambitious decarbonization plans make copper industry an attractive investment for funds that use environmental, social, and governance (ESG) criteria.
Currently, the contribution of copper for the greenhouse gas emissions on a global scale is 0.2%.
It was in 2018 when the refined copper production registered average emission intensity of 4.6 tons of CO2e. The intensity of 4.6 tons was versus each ton of copper.
Back in 1990, it was 5.4 tons of CO2e against each ton of copper, which was 13.4% more than the current level.
In conclusion, while copper prices can be volatile and subject to fluctuations, the long-term outlook for the metal appears promising.
With the growing demand for copper in various industries, there is reason to believe that copper stocks will remain an attractive investment.
However, as with any investment, it’s important to conduct thorough research and analysis before making any decisions.