1 / 9The term "doctor copper" is market lingo for this base metal that is reputed to have a "PhD in economics" because of its ability to predict turning points in the global economy.
2 / 9Most copper is used in electric equipment as wiring and motors as it conducts both heat and electricity well. So, from electronic circuits to construction as roofing, plumbing railings and the overall power systems, copper rules. In fact, more than half of all mined copper is used in electrical wiring.
3 / 9Fitch Solutions Country Risk and Industry Research expects copper to remain elevated by historical standards, averaging around $7,500/tonne over fourth quarter of FY22. The demand estimates for copper going forward are bullish. The global copper deficit in 2021 was a mere 2 percent of global demand.
4 / 9However, by 2035 the demand for global copper is estimated to rise manifolds as per an estimate by brokerage firm S&P Global.
5 / 9By 2040, the global demand for copper is expected to surge by 50 percent from the current year. But there are some supply concerns. Read on...
6 / 9The reason Goldman Sachs and Citi are bullish on copper for the long term is due to supply concerns, as lower prices have led to under investments in the sector. Ore quality at mature mines is falling, and mining costs are high.
7 / 9There are regulatory uncertainties in Chile and Peru also.
8 / 9The bullish stance from mining giants like Newmont and Freeport also support.
9 / 9Copper is essential to modern life as more than double the copper is required in an EV as compared to an average car market, estimates a need to spend $150 billion in the next decade to solve an 8-14 million tonne deficit.
