The red metal, commonly used in power cables, wind turbines, electric vehicles, and solar panels, has registered a price surge of over 15% in the last two months due to production disruptions threatening China’s refined-copper output. With Chinese smelters contributing to more than half of the global supply, the market has been rife with bullish calls as investors anticipate a surge in consumption amidst a manufacturing upturn.
Citigroup Inc. analysts emphasized the role of decarbonization-related demand growth in propelling copper to its second secular bull market this century. They stated that only higher prices would address the current deficits in the market, highlighting the pivotal role of copper in the energy transition.
Copper prices have risen to a 15-month high on the back of disruptions in Chinese smelters and encouraging prospects for consumption. With a critical role in the energy transition, driven by booming demand for decarbonization-related purposes, copper has witnessed a surge in bullish sentiments and price forecasts.
