5 Top Weekly TSXV Stocks: Minsud Reaps Benefits of...

The top gainers on the TSXV last week were Minsud Resources, Mangazeya Mining, Wilton Resources, Oroco...

November 17th, 2019

Copper Hits 2 Week Low, Rebounds on Trade Talk...

Weak Chinese manufacturing and investment data hurt copper during the week, but it was boosted Friday...

November 15th, 2019

Arc Minerals to Sell Stake in Casa Mining to...

As the company moves toward becoming a copper-focused entity, Arc Minerals has sold off its stake...

November 13th, 2019

Chilean Copper Output Steady Despite Protests

Despite setbacks, copper mining companies in Chile are reporting that their outputs have not been affected.

November 7th, 2019

EMR Capital: Copper is the Next Oil and Gas

Speaking at IMARC, Jason Chang of EMR Capital shared his thoughts on financing, copper and tips...

November 5th, 2019

Freeport’s New AI Technology Promises Increased Copper Output

Copper miner Freeport-McMoran has unveiled a plan to increase its output by 90,000 tonnes by using...

November 4th, 2019

Mining on the Resource-rich Island of Fiji’s Viti Levu

The Fijian island of Viti Levu offers rich resources and an extensive mining history that are...

November 3rd, 2019
<< Older Posts
Dubbed the red metal, copper is a soft, malleable metal that belongs to the base metals family. Due to its various properties, such as high ductility and electrical conductivity, it is the third most consumed industrial metal in the world behind iron and aluminum, as per the US Geological Survey. Given its attributes, copper is often used for electrical purposes such as power transmission and generation. Like its base metal sibling nickel, copper has played a major role in the electric vehicle (EV) revolution, with experts expecting consumption of the metal to grow 250 percent by 2030 due to EVs. Read on to get an idea of copper’s supply and demand dynamics and also how to invest in the red...

Dubbed the red metal, copper is a soft, malleable metal that belongs to the base metals family.

Due to its various properties, such as high ductility and electrical conductivity, it is the third most consumed industrial metal in the world behind iron and aluminum, as per the US Geological Survey.

Given its attributes, copper is often used for electrical purposes such as power transmission and generation. Like its base metal sibling nickel, copper has played a major role in the electric vehicle (EV) revolution, with experts expecting consumption of the metal to grow 250 percent by 2030 due to EVs.

Read on to get an idea of copper’s supply and demand dynamics and also how to invest in the red metal.

Copper investing: Supply and demand

Similar to any other commodity, copper supply can be prone to disruption in various capacities: environmental events, worker strikes, economic fluctuations and so on. As such, it’s important to keep an eye on what’s happening in the world’s major copper-producing countries, such as Chile, Peru and China.

2019 has seen a handful of disruptive production hiccups, including a strike at Codelco’s Chuquicamata mine, known as one of the world’s biggest copper mines. The issues have contributed to big picture concerns, with some experts nervously anticipating an eventual deficit in copper supply.

While that copper deficit may not come to fruition for quite some time, copper’s long-term demand outlook remains strong. According to the Copper Development Association, copper demand driven by EVs is expected to grow by 1,700 kilotons by 2027.

Ongoing trade war issues between China and the US have also had a notable impact on copper as of late. With China being the world’s largest copper consumer, new Chinese import restrictions on copper scrap could put a substantial dent in the market.

According to Reuters, China has been working to limit scrap imports in an effort to reduce the shipment of foreign solid waste into the country; however, the outlet notes that scrap accounted for 10 percent of China’s copper use last year.

As with any metal, supply shortages can lead to jumps in price, assuming demand remains intact or rises. The balancing act of supply and demand is fickle, and investors who are curious about copper may want to get involved sooner rather than later.

Copper investing: How to invest

There are a variety of ways one can get involved in the copper market. As with other commodities, exchange-traded funds (ETFs), futures and stocks are common methods of capitalizing on copper.

In the case of ETFs, investors are able to access the copper market indirectly by looking at funds focused on copper or copper mining companies.

Futures give investors a chance to take part in the market in a lower-risk fashion; according to InvestingAnswers, “(Futures) allow buyers and sellers to ‘lock in’ the price at which they buy or sell an asset in the future.” This creates a bit of a safety net effect for those on the market.

Lastly, there are copper stocks, which are one of the most direct routes to the market. Investors can buy shares of companies involved in copper mining and ride the ebb and flow of both the company’s performance and the price of copper.

For reference, some of the largest copper mining companies are Freeport-McMoRan (NYSE:FCX), Glencore (LSE:GLEN,OTC Pink:GLCNF), BHP (ASX:BHP,NYSE:BHP,LSE:BLT) and Rio Tinto (LSE:RIO,NYSE:RIO,ASX:RIO).

Want to learn more about copper investing? Check out the articles below:

Get the latest Copper Investing stock information

Get the latest information about companies associated with Copper Investing Delivered directly to your inbox.

Copper Investing

Select All
Select None