Global efforts to mitigate climate change will put metals like copper at the center of a sustained period of “extraordinary” demand growth that miners will struggle to meet, according to China Molybdenum Co.
Despite short-term volatility due to potential interest rate hikes and the tapering of quantitative easing measures, copper will enter a decade-long bull market, Vice Chairman and Chief Investment Officer Chaochun Li said in an interview.
The metal, as well as cobalt, is likely to see substantial consumption growth over the next five to ten years as more countries lay out plans to become carbon neutral, he said.
The sector is already booming: copper surged to a record in May, cobalt is climbing, and lithium prices are at the highest ever. Miners haven’t been able to keep up with demand and supply for key commodities is likely to be constrained by years of underinvestment, depletion of easy-to-extract reserves, and concerns that range from environmental impacts to geopolitical tensions.
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