Copper: The Next Big Boom - Prices Could Skyrocket to $40,000

27 maj

Hedge fund manager Pierre Andurand predicts that copper prices could surge to $40,000 per tonne in the coming years due to soaring demand. Currently priced at around $11,000 per tonne, copper has already seen a 20% increase this year. The demand is driven by the electrification of various sectors, including electric vehicles, renewable energy sources, military uses, and data centers.

Andurand, who manages approximately $2 billion in assets at Andurand Capital, forecasts this dramatic rise based on the doubling of demand growth for copper. He acknowledges that although a supply response is expected, it will take more than five years to materialize. This sentiment is echoed by former Goldman Sachs executive Jeff Currie, who also predicts significant price increases, albeit to a more conservative $15,000 per tonne.

The transport sector's copper demand is projected to grow over 11 times by 2050, with electric vehicles alone requiring substantial amounts of copper wiring. Additionally, the expansion of the global electricity grid will necessitate a 4.8-fold increase in copper demand by 2050.

The copper supply gap is projected to reach 10 million tonnes by 2030, as per BloombergNEF estimates. Despite not being widely known in the US, Andurand has a solid track record in commodities trading, with his funds experiencing an 83% increase in value this year.

The rising copper prices reflect broader trends in the metals market, driven by strong demand and historically low inventories. Significant growth in copper demand is also anticipated from developing countries, particularly China, India, and Indonesia, which are experiencing exponential increases in consumption.