Copper’s Value Projected to Increase as Bull Run
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Posted On: 12/10/2020 2:57:03 AM
Copper’s Value Projected to Increase as Bull Run Begins
Last week, copper was trading at $7,616ton, its highest price since 2013. Interestingly, the metal’s price is increasing as various pharmaceutical firms announce the development of effective coronavirus vaccines. In fact, the value of copper grew by 12.24% last month, as hopes of the global economy opening to full capacity grow.
The growth in value may also be attributed to improved manufacturing activity in China, Eurozone and the United States. Last month, factories in China reported huge improvements, the strongest in more than a decade. New orders surpassed 10-year highs with the PMI of Caixin China General Manufacturing posting at 54.9.
In the U.S., the PMI of the IHS US Manufacturing increased from 53.4 to 56.7, the sharpest growth since 2014 September. JPMorgan Global Manufacturing’s PMI hit a nearly three-year high, recording at 53.7, the fastest growth witnessed in the company since 2018 January.
Market experts and economists expect China, which already consumes nearly half of all the copper produced globally, to direct copper’s new price. It is expected that China’s consumption will rise as the country experiences a major shift with regard to energy, moving to renewables such as solar and wind. Earlier in July, China imported unwrought copper weighing a total of 762,211 tons.
The VP of marketing and sales at BHP, Tariq Salaria, which is among the top copper-producing firms in the world, stated that the output of copper would be required to double in the next three decades in order to meet green renewable energy’s growing demand.
Analysts from Goldman Sachs state that copper’s price strength will only increase, with the prediction that by 2022’s first half, the industrial metal may surpass its February 2011 record of $10,150/ton. This would explain the growth in shares of both explorers and copper producers.
Between June and December, the SOLGLOCO Index recorded a growth of more than 66%. The performance recorded during the same time frame was driven by the following companies: Ivanhoe Mines increasing with 93.93%, Freeport-McMoRan up by 140.68% and Capstone Mining, which operates in both Mexico and the U.S. with 174.04%.
Ivanhoe Mines reported earlier in September that it is set to start production at the Kamoa Copper Project, its Democratic Republic of Congo Project. The Vancouver-based firm may have scored big, as this site is believed to be the second biggest copper deposit in the world. Ivanhoe co-chairman and founder Robert Friedland stated that the project was on track and would commence production soon.
Canadian-based Josemaria Resources Inc. (TSX: JOSE) (OTCQB: JOSMF) is pressing ahead with developing its gold and copper mining project in the Argentine San Juan Province. Given the way things are looking, Josemaria could be set to register massive gains.
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
Last week, copper was trading at $7,616ton, its highest price since 2013. Interestingly, the metal’s price is increasing as various pharmaceutical firms announce the development of effective coronavirus vaccines. In fact, the value of copper grew by 12.24% last month, as hopes of the global economy opening to full capacity grow.
The growth in value may also be attributed to improved manufacturing activity in China, Eurozone and the United States. Last month, factories in China reported huge improvements, the strongest in more than a decade. New orders surpassed 10-year highs with the PMI of Caixin China General Manufacturing posting at 54.9.
In the U.S., the PMI of the IHS US Manufacturing increased from 53.4 to 56.7, the sharpest growth since 2014 September. JPMorgan Global Manufacturing’s PMI hit a nearly three-year high, recording at 53.7, the fastest growth witnessed in the company since 2018 January.
Market experts and economists expect China, which already consumes nearly half of all the copper produced globally, to direct copper’s new price. It is expected that China’s consumption will rise as the country experiences a major shift with regard to energy, moving to renewables such as solar and wind. Earlier in July, China imported unwrought copper weighing a total of 762,211 tons.
The VP of marketing and sales at BHP, Tariq Salaria, which is among the top copper-producing firms in the world, stated that the output of copper would be required to double in the next three decades in order to meet green renewable energy’s growing demand.
Analysts from Goldman Sachs state that copper’s price strength will only increase, with the prediction that by 2022’s first half, the industrial metal may surpass its February 2011 record of $10,150/ton. This would explain the growth in shares of both explorers and copper producers.
Between June and December, the SOLGLOCO Index recorded a growth of more than 66%. The performance recorded during the same time frame was driven by the following companies: Ivanhoe Mines increasing with 93.93%, Freeport-McMoRan up by 140.68% and Capstone Mining, which operates in both Mexico and the U.S. with 174.04%.
Ivanhoe Mines reported earlier in September that it is set to start production at the Kamoa Copper Project, its Democratic Republic of Congo Project. The Vancouver-based firm may have scored big, as this site is believed to be the second biggest copper deposit in the world. Ivanhoe co-chairman and founder Robert Friedland stated that the project was on track and would commence production soon.
Canadian-based Josemaria Resources Inc. (TSX: JOSE) (OTCQB: JOSMF) is pressing ahead with developing its gold and copper mining project in the Argentine San Juan Province. Given the way things are looking, Josemaria could be set to register massive gains.
Please see full terms of use and disclaimers on the MiningNewsWire website applicable to all content provided by MNW, wherever published or re-published: https://www.MiningNewsWire.com/Disclaimer
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