The current copper price has been on the rise in recent years, making the metal an attractive investment opportunity for many junior miners. However, is it still a good idea to invest in this base metal, especially with the backdrop of a global economic slowdown? In a recent interview with the Investing News Network, Joe Mazumdar of Exploration Insights discussed why he believes higher copper prices are ahead.Learn more :https://schrottleitfaden.de/alu-schrottpreis/

According to the metals consultancy Wood Mackenzie, a number of factors are driving the current copper market price. Infrastructure demand is one of the main drivers. Emerging markets are building more and more roads, bridges, power plants and other projects that require copper. Then there’s the energy transition. The metal’s excellent conductivity rating makes it a perfect component for renewable electricity generation, electric vehicle batteries and charging infrastructure.

Unraveling the Surge: Understanding the Recent Spike in Copper Prices

Another factor driving the copper price is China’s economy. The pace of growth in the country’s manufacturing sector largely correlates strongly to copper prices, and China buys between 40%-50% of the world’s annual copper supply.

While China’s growth has slowed since the beginning of the COVID-19 pandemic, the pace is expected to pick up again in the coming months. Adding to the optimism, metals consultancy BofA Global Research recently raised its 2023 copper price target to $8,788 per tonne, noting that even in the event of a global recession, higher oil prices, and interest rate increases, the metal’s role in cleaner energy generation should help to support the copper market price.